Shocking: Romanians now live better than Hungarians? – UPDATE
Romania has already surpassed Hungary’s GDP, and new statistics indicate a worsening position for Hungary in the region. Factors such as wages, cost of living and inflation levels demonstrate Romania’s superior economic standing, raising significant questions as Hungary struggles to match the development of the other countries in the region.
Differences in wages in Romania and Hungary
According to portfolio.hu, Romania has overtaken Hungary in economic growth. As we previously reported, Eurostat data showed Romania’s GDP per capita surpassing Hungary’s in 2023. However, recent figures reveal that Romania’s consumption levels were also higher, driven by increased wages and faster economic expansion.
While comparing wages across different countries is challenging due to exchange rate fluctuations and pricing disparities, it’s evident that Poland boasts the highest wages in the region, with Romania showing the fastest expansion. Moreover, Romania’s consumption levels appear more stable than Hungary’s. Data suggests that Bulgaria’s consumption could soon reach Hungary’s level, reflecting its rapid development. Hungary’s low wage costs may attract companies seeking cheaper labour over higher education and added value, with the average wage cost standing at 13 euros per hour.
Ákos Péter Bod, the former governor of the Hungarian National Bank, recently authored an article for portfolio.hu, suggesting that Hungarians should abandon the notion of having a superior economy to Romania or other former socialist countries like the Czech Republic or Slovakia, as societal beliefs previously held. He states that Hungary lags behind these countries and its much more developed neighbour, Austria.
Below the region’s average, concerning numbers
Comparing the wages and the consumption of Hungary and Romania, it is clear that Hungary falls far below expectations considering its wage levels, possibly due to increased state intervention in the economy. In the last couple of years, Hungary’s investments have dominated its economy, and the government doesn’t seem to change its plan in this regard for the foreseeable future.
According to economx.hu, Hungary’s relative development declined between 2019 and 2023, despite surpassing Slovakia’s, Romania’s and even Poland’s economies in 2019. However, it failed to keep pace with others in the region, particularly in areas such as green energy and digitalisation, due to being more sensitive to external influences. Since 2022, Hungary’s economic performance has suffered, primarily due to inflation. The country has the highest food, petrol and service prices in the region relative to wages. While exports improved in 2023 due to electric battery production, investment levels decreased and national debt reached a regional high.
Based on these figures, it is clear that Hungary can’t keep up with the region’s average economic development, as the country’s relative expansion and productivity both dropped in recent years. According to the Hungarian National Bank’s latest report, urgent action is needed to bring Hungary up to the region’s standards, necessitating significant reforms.
UPDATE
According to labour market expert and research fellow of the Institute of Economy and Competitiveness of the National University of Public Service, Piroska Szalai, something is missing from the above analysis.
According to her article on Mandiner, Eurostat publishes annual average earnings data for all employees in enterprises with 10 or more employees. The survey excludes employees in agriculture, forestry and fishing, public administration, defence and compulsory social security, non-employees and employees in micro-enterprises with less than 10 employees.
In Hungary, two-fifths of the employed and one-fifth of the total population were covered only.
According to the 2023 figures, Hungary is in 24th place in euro terms for average income childless, followed by Romania, Bulgaria and Croatia. According to Szalai, a more accurate picture is obtained by comparing the data in purchasing power parity. Unfortunately, here only the 2022 data are the most recent available from Eurostat, so the data are calculated using this value. Thus, we can expect some changes in the data.
Currently, this calculation puts Hungary in 22nd place since 2019, with Estonia, Croatia, Bulgaria, Latvia and Slovakia following us in 2023. The order of the Member States changes from year to year. Estonia is now behind us, Romania is ahead. Bulgaria has moved up from penultimate place in 2022, swapping places with Latvia.
According to Szalai, it is important to point out that this 2023 figure is the sequence calculated with the 2022 purchasing power, “which is as accurate as the halfway point in a marathon”.
She adds that one in three Romanians is still poor. “While the rate in Romania has fallen slightly, but is still below the EU average, less than one in five Hungarians are at risk of poverty.”
Between 2010 and 2021, Hungary made the largest improvement among Member States in this area, and also saw the largest reduction in child poverty, as a result of increased employment and the increase in the purchasing power of earnings, not only for employees in large firms but also for all employees, she concluded.
Read also:
- Hungary has almost no chance of reaching the economic development level of Romania
- Romania is more developed than Hungary – read more here
It is Soros fault! The Brussels Bureaucrats are to blame! The EU did this to us! The Leftist Elites!
Couldn´t possibly be our Politicians, right?
“What you’re seeing and what you’re reading is not what’s happening” (former President Trump) – or is it “the party told you to reject the evidence of your eyes and ears. It was their final, most essential command.” (1984 – Orwell)
Norbert hits the nail on the head. Where I live in Canada if a rock falls from the sky the Prime Minister and the national government is to blame. In Hungary where the same national government has been in power for 14 years and rules by decree it is never responsible for Hungary’s problems. The problems are all blamed through state controlled media on malign outside forces. In the end Hungarians get what they deserve if they continue to reelect the same group of incompetent bandits.
But fidesz “the wise one” said that the Hungarian model is the right one! How is this possible?
Looks like the only ones still believing in the Hungarian way are….. The Hungarians.
So sad reality for the young people
3 thinking comments in a row and Daily News Hungary didn’t remove them?? The censor has been drinking again instead of watching the posts. I will complain to Orban! Please feel free to block my post as usual. 🤣🤣🤣
Dear Bernard, do you have any concerns regarding the comments under Daily News Hungary posts? We only remove comments that are actively hate speech and/or wish harm or death upon somebody.
Bernard, i have never seen comments that calls for hurting the hungarians leaders, as long as i dont like them, i can just “complain” about the lack of sense in their speeches. This is the only media that looks is not controlled by the government. Any other one like hungary today do not even allow comments, so, what is your argument? You dont like what you read? Fine, go to any other controlled media site where you are not going to read us
It’s not entirely true. I am writing from Romania. The statistics is indeed a bit favorable on paper but this doesn’t translate to the standard of living, and I could say, likely, the normal Hungarian is still doing better than it Romanian counterpart. Hungarian villages are far more organized and wealthy than the Romanian countryside whereas in the cities situation is almost the same. Unfortunately our countries have a fierce competition between who is the more corrupt, has the highest inflation, worst paid teachers and inefficient transport infrastructure whilst overnight absurde fiscal burdain for companies. With so little interest on the educational sector, no wonder we end up with imbecile politicians who are only concerned about their big fat bank accounts. Sad sad times.
Hungary, needs to wake up to the FACT, as it declines rapidly, from being a DEMOCRACY – the gargantuan problems they HAVE as a country, that won’t go away, but WORSEN in the immediate future, that have on millions of us already, through the course of over 14 years, under the Orban – Fidesz Government, will HEAVILY impact on millions of Hungarians, there life quality, there savings & assets, there individual FUTURES – if they have any left, that have not already DISAPPEARED for the incompetent dunderhead Financial & Economic Management of Hungary, delivered us by this Orban – Fidesz Government.
Hungary, factually we have been SMASHED.
Hungary – we are debt riddled, with the ugliness of living in a country that HAS on-going increased DEBT – from BORROWINGS as a country, that from a ” Debt SERVICING” perspective, ability to PAY – even the INTEREST charges, the PRESSURIZATION mounting on the Orban led Fidesz Government, the impact of these KNOWN Facts – WILL continue to have, on the pockets – the life qualities of each and every in our millions Hungarians – will be FELT.
It ALL will WORSEN and in that WORSENING, in our millions – the Orban Fidesz Government – will CONTINUE to EXPLOIT us – “bleed” us, that we know has been there PRACTICE, over the course of the 14 years the Orban – Fidesz Government, have been in office – in POWER in Hungary.
The DISTALLATION of Democracy under Victor Orban, the BASTARDIZATION – “sell off” of Orban and his Fidesz Government, of Hungary, that continues to move Hungary – build closer relationships and partnerships with China and Russia – country’s ruled under a DICTATORSHIP and Communism.
REMEMBER – we are seeing no – what could be said “Mea Culpa” from Hungary – from the Orban – Fidesz Government, to the European Union, but the OPPOSITE – just continual “taunts” of CRITICISM, that will sooner than later, be to Hungary’s HUMONGOUS – disbenefit / disadvantage – for any HOPE of our country’s FUTURE.
Larry – remember my commentary, using the closing scene of the “famed” film – Mrs Miniver ?
“It’s a PEOPLES War.” words extracted from that MASTERFUL piece of “screen writing” delivered to the village by it’s Vicar.
Hungary without SOLIDARITY – millions upon millions of Hungarians, from Cities, Towns, Villages and Hamlets – if they don’t Together “fight the fight” confront oppose and challenge – my term as a Peoples War – to “rid” of the Orban – Fidesz Government, they CONTINUE to descend into a Nadir, that is black in it’s colour presently – that will WORSEN.