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Financial divide in Hungary: The rich get richer, the poor get poorer

Financial divide in Hungary: The rich get richer, the poor get poorer

According to hvg.hu, the GKI Economy Research Inc. recently published an analysis about the purchasing power – an essential segment of quality of life – of Hungarian settlements between 2009 and 2016, and it turned out that the advantage of more abundant regions is continuously growing, while the poor still lag behind.

Based on the calculations of GKI, the purchasing power/person rate – in other words, the total income that can be spent in a year – in an average Hungarian settlement is 1.2 million forints (data from 2009-2016 period).

The most interesting part is the differences they found: there’s a divide worth three million forints between the richest and the poorest settlement.

The purchasing power/person rate didn’t exceed 800 thousand forints in 280 settlements, while the rate varied between 800 thousand and one million in 558 settlements. It was 1-1.2 million in 895 places, and the 7th district, 787 towns and the 4th district fall between 1.2 and 1.4 million. The rate was outstanding in 442 settlements and the 6th district (1.4-1.6 million), and in further 189 settlements and the 12th district (more than 1.6 million).

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Towns with extraordinary purchasing power are mainly found in North Transdanubia and Central Hungary, while the poorest settlements are found in North-East Hungary and South Hungary.

The researchers also found out that the situation worsened in 55 settlements and the 19th district, while the rate stagnated in 156 towns and four districts of Budapest.

There was a slight increase in 677 places and the 2nd district. An average rise characterised 1218 settlements and 7 districts. The purchasing power increased outstandingly in the remaining settlements and districts.

All in all, the rich regions got richer, while the poor regions got poorer.

Source: http://hvg.hu/

1 Comment

  1. a. c. horvath

    There is a simple explanation why the rich get richer and the poor get poorer. The poor work (40-70 hours per week) for their money. The rich have their money work for them 24 hours a day 365 days a year. Guess who is going to accumulate more wealth at the end of 12 months?

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