Based on the Hungarian Central Statistical Office (KSH), 4,500 shops had to shut down for good in Hungary between May 2022 and May 2023. The future seems to be rather dim. An even higher number of shops are expected to close due to the gradually dwindling purchasing power.
The costs for retailers increased so much that most of them fear going bust and, thus opt for closing their shops. On average, employees receive 20 percent higher salaries in Hungary, while purchase and energy prices have been skyrocketing. Meanwhile, food prices increased by 40-45 percent in Hungary, which is exceptional in the EU. Government food price caps and compulsory price reductions affected most smaller shops, index.hu wrote.
Last year, 4,500 shops closed in Hungary. That is 4 percent of the total number of shops operating in Hungary. Earlier, only 2-3 percent of the shops closed yearly. Based on the KSH, 1,500 supermarkets, more than 1,000 other shops and 800 clothing stores were forced to cease operation. Food consumption in Hungary drops by 10 percent on a yearly basis. That rate was only 8-9 percent during the 2008-2009 global crisis. The government then lost the elections, and PM Orbán regained power with a 2/3rd majority. Now his government is stronger than ever, Fidesz support is around 50 percent despite the crisis.
Hungary’s March industrial output down 4.1 pc – KSH
The output of Hungary’s industrial sector fell by an annual 4.1 percent in March, the Central Statistical Office (KSH) said in a second reading of data on Friday. March output plummeted by 4 percent when adjusted for the number of working days. Month on month, output edged up a seasonally and working day-adjusted 0.2 percent. Industrial exports drew close an annual 0.4 percent. Automotive exports jumped by 31 percent, while electrical machinery manufacturing was up 23 percent.
The output of the food, drinks and tobacco segment slipped by 13.3 percent. Industrial sales fell 7.5 percent in March. Export sales edged up 0.4 percent but domestic sales dropped by 17 percent. For the period January-March, output dropped by an annual 3.1 percent.