Hungary’s income decline: 8 in 10 citizens fall behind European peers

A recent analysis reveals that Hungary has seen a significant decline in its citizens’ relative income standings within the European Union over the past few years. Following the pandemic and the onset of the Russian-Ukrainian war, only a small segment of Hungary’s population—roughly 15%—has improved its position in EU income rankings. This is a sharp contrast to the situation in the late 2010s when Hungary experienced a period of economic growth, benefiting a broader portion of the population.

When ranking EU residents by income, Hungary’s citizens as a whole have slipped backwards between 2020 and 2023, G7 reports. Most notably, this trend is evident across both nominal income (in euros) and purchasing power parity, which adjusts for cost-of-living differences between countries. The government’s attempts to regulate prices have had little impact on reversing this decline.

Source: Pixabay

For instance, Hungarians earning at the median level in 2020 ranked in the 13th percentile across the EU, meaning they earned more than 13% of Europeans. By 2023, this had dropped to the 11th percentile. The top earners in Hungary, however, have seen some improvement, with those in the 90th income percentile advancing from ranking 28% of Europeans in 2020 to 29% in 2023.

While the wealthiest 3% of Hungarians have made notable gains, closing the income gap with their European peers,

the majority—around 85%—have fallen further behind.

In fact, the G7 article suggests that 8.5 out of 10 Hungarians are now in a worse relative income position compared to the EU average, contradicting the narrative of economic progress for all.

The gap between high earners and low earners has remained stark. The government’s policy of flat taxes and generalised subsidies, such as energy price reductions, disproportionately benefit the wealthier segments of society. While high-income individuals have seen substantial pay increases that helped them climb the EU income ladder, the poor have faced the brunt of skyrocketing inflation, exacerbating income inequality.

Ultimately, the data paints a picture of growing economic disparity in Hungary, where only the top earners are benefiting from EU-wide income improvements, while the rest of the population struggles to keep pace. This growing income divide underscores the lack of effective policies aimed at reducing inequality in Hungary.

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3 Comments

Larry says:

28/11/2024 at 14:47

These statistics paint a picture of complete failure of the Fidesz government to make the lives of Hungarians better. They only work for the greedy rich oligarchs connected to the Fidesz party by cutting their taxes while ordinary Hungarians pay the highest VAT taxes in the world on basic goods that they need. Vote for them again in 2026 and you can get more of the same.
" An Unknown lifeboat, is BETTER than a KNOW Ship, sinking FAST - by the Stern." : says:

28/11/2024 at 16:23

FACT – we have 1.1 million Hungarians – LIVING in POVERTY.
That figure – its percentage representation of our population, an AGEING – decreasing in number population of 9.6 million Hungarians is a HUMILIATION on Hungary – us its population.
The PRESSURIZATION on Hungary, that this FAILED Government – in the CORE of a GOVERNMENT – a CREED of a Government should PRIORITIZE it-self – its FIRST priority is to its PEOPLE – then secondly – for the BETTERMENT – improvement of the country.
This just stands out like “Dogs Balls” – the humongous “Heinous” practices – abuse andlies, fabrication of Truth, the “veiling” of TRUTH, never accepting nor TAKING Blame when they are WRONG or been DISGRASSED through there in-ability to GOVERN under TRUTH, with the citizens they serve and represent – the always BLAMMERS of “others” – that JUST capture, in part, the FAILINGS – delivered to us, the citizens of Hungary, by this Orban led Fidesz Government.
Is the TIDE about to turn – lifting us up and out of – as a country from this DEVASTATED – destroyed likened place as a country we are in at this point in TIME ???
ASK yourself fellow Hungarians that QUESTION.
It is NOT – going to WEAKEN – through the FORCES internally being FELT in Hungary in the Economy, and by STRONGER external forces in Europe and GLOBALLY – that will WORSEN substantially – the position we find ourselves to-day – Hungary.
Hungarians – we have been FAILED.
Insensitive & Cruel : says:

29/11/2024 at 10:56

” The True measure of any Society can be found, in how it Treats – its most Vulnerable.”
Orban, his Fidesz Government, over the course of 16 years – there somewhat Manifestation – never far out of our FACES, this “supposed” Party – its first PRIORITY the citizens of Hungary, there “blasphemous” usage of being “pro-active” in there political agenda built on and around Christian principles & practices, that THEY have been an absolute SHAM.
What, just on there FAILINGS – that is FACT, responsible for 1.1 million Hungarians, those, that just throughout the 16 years of this Orban led Fidesz Government, have been in the Vulnerable status, in Hungarian Society.
There is much sadness, through numerous reasons, in those who are VULNERABLE, and that eventually “succumb” – to see these lives, transferred into one of living in POVERTY.
The momentum, that will see an increase in this POVERTY classification of Hungarian society, will INCREASE, muchly through, the state – of the “eroding” Economy of Hungary.
Orban – his Fidesz Government, there gargantuan FAILINGS, to PRIORITIZE in there Governance of Hungary – Number 1 – Hungarians, that this POVERTY of epidemic growth, is a result, that will WORSEN, of there INSULAR and unchristian practices afforded – in the treatment of Hungarians.
The MORAL test of a Government, is HOW that Government, in the case of the Orban led Fidesz Government of Hungary – there PONTIFICATION of ” Christian Values” in the “Core” in there Governance of Hungary, which ALL is just PROPAGANDA and Lies, of absolute FALSE representation, a government treats those who are in the dawn of life, the children; those who are in the Twilight of there Life, the elderly; and those who are in the shadows of life, the sick, the NEEDY – the Vulnerable, and the handicapped.
WHAT a CALLOUS Government, they have been, over 16 years, this Orban led Fidesz Government on HUNGARY.