Grim data: Hungary among EU’s lowest in household material welfare
Recent data from Eurostat highlights stark disparities in household material welfare across Europe, with Hungary ranking at the bottom alongside Bulgaria. The study uses Actual Individual Consumption (AIC) per capita, expressed in Purchasing Power Standards (PPS), to measure material well-being. This indicator accounts for all goods and services consumed by households, whether paid for directly or provided by governments and nonprofits.
Hungary’s position in the EU
According to Euronews’ reports, in 2023, Hungary’s AIC per capita was just 70% of the EU average, a figure it shares with Bulgaria, marking the lowest levels among member states. In contrast, Luxembourg led the EU with an AIC per capita of 136%, or 36% above the EU average. Neighbouring countries like Slovakia and Croatia also recorded below-average material welfare, but Hungary’s standing underscores the persistent economic challenges faced by Central and Eastern European nations.
Regional trends and comparisons
While nine EU countries—including Germany, Austria, and the Netherlands—exceeded the EU average for household material welfare, Hungary continues to trail significantly. Notably, countries like Poland (83%), Czechia (81%), and Greece (80%) outperformed Hungary in this measure. Among non-EU countries, Türkiye achieved an AIC per capita of 84% of the EU average, surpassing Hungary and eight other member states. This highlights the growing economic divergence between EU and candidate countries, with Türkiye standing as an exception due to its relatively high material welfare.
Changes over time
Over the last five years, Hungary’s AIC per capita saw slight improvements, climbing from 62% in 2020 to 70% in 2023. This modest growth aligns with trends in other lower-ranking EU nations, such as Bulgaria, but contrasts with declines in wealthier member states like Denmark and Finland.
Insights on material welfare
“A household’s material well-being can be expressed in terms of its access to goods and services”, Eurostat writes. Hungary’s position at the bottom of the EU rankings highlights larger regional disparities in living standards. While Western and Nordic countries consistently report higher material welfare, Central and Eastern European nations, including Hungary, struggle to close the gap. These differences emphasise the challenges in achieving economic parity across the bloc. As Hungary continues to negotiate economic pressures, the AIC per capita data serves as a stark reminder of the ongoing need for targeted policies to improve household material welfare.
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Featured image: depositphotos.com
Lowest household material welfare: If you enjoy it just keep voting for Fidesz for more of the same. After 14 years in power, super majorities, rule by decree, altering the constitution to suit the party, stuffing the judicial system with partisan judges, and control over everything else in the country right down to the billboards that push their constant propaganda this is what Fidesz has brought to Hungary. Oh yeah, and make sure you start learning Russian.
Quick explainer: actual individual consumption (AIC) is an alternative indicator to GDP, which is better adapted to describe the material welfare of households.
Perhaps best to peruse the summary and source data links:
https://ec.europa.eu/eurostat/statistics-explained/index.php?title=GDP_per_capita,_consumption_per_capita_and_price_level_indices
If TLDR – go straight for the AIC table and find Hungary. And draw your own conclusions.