The average expenses of the European Union’s households dropped by 8%.
Hungarians spent less money during the pandemic. This can be due to the lockdowns and the fact that many facilities were closed down. Restaurants, cinemas, theaters, malls were shut down, and people were quarantined. Even taxi companies were impacted badly as many drivers left their job.
Even though life bounced back to nearly normal, the pandemic caused a serious cut back on certain expenses. People spent less on tourism and hospitality. As Daily News Hungary formerly wrote, events organised at the end of the year usually bring in HUF 60 million (EUR 162,333) profit. Last year, the revenue could have been estimated as low as HUF 6 million (EUR 16,233). Many people who previously worked in the sector left their job, with no intention to ever return. Taxi companies also faced issues. While in Budapest there were almost 7,000 taxi drivers before the pandemic, now their number dropped to 5,000. The pandemic did not make things easier for them, either. Even a 30 – 40% profit loss makes life a lot more difficult for taxi drivers. Understandably, people look for more secure jobs. People spent less on clothes as well. The expenses on culture, leisure and transport significantly reduced too. On the other hand, people spent more on communication services, home decor, and house renovation.
In 2020, household consumption dropped in many European Member States, including Malta that faced a 22% decrease. Croatian, Spanish, and Greek households also suffered an over 15% decline in consumption. Slovakia and Denmark experienced a 2% decrease, followed by Lithuania and Poland.
Hungarian households spent a lot less though. Only Bulgarians spent less than Hungarians, which means that the economy does not look great. The consumption of Hungarian households shrank by 4.6%, which is better than the EU average. Expenditure on alcoholic beverages increased by 3.7%. These numbers do not ring an alarm, but looking at the country’s GDP Hungary could do better.
Hungarian households spend annually EUR 6,680 per person on average. The GDP measured in euro means that Hungary ranks as the fifth-lowest on the list. By looking at the value of money, the ranking is slightly better; the country occupies the seventh place on the list counting from the bottom. – writes hvg.hu.