Eurostat has published new figures on the economic performance and living standards of European Union member states, and the latest data paints a troubling picture for Hungary.

Hungary had a grim last year

According to preliminary estimates for 2025, Hungary shares last place with Latvia in terms of Actual Individual Consumption (AIC), one of the key indicators used by the EU’s statistical office to assess citizens’ standard of living.

The latest figures show that Hungarian households’ consumption reached only 73% of the EU average in 2025. While this was unchanged from the previous year, several countries managed to improve their position. Latvia, for example, rose from 72% to 73%, placing it alongside Hungary at the bottom of the ranking. Estonia was only slightly ahead, recording 74% of the EU average, reports Portfolio.

What is AIC, and why does it matter?

Actual Individual Consumption measures more than just the goods and services people purchase with their own income. It also includes public services that citizens receive through taxation, such as healthcare and education. The indicator is calculated using purchasing power parity (PPP), which eliminates differences in price levels between countries, allowing for a more accurate comparison of living standards across the EU.

A regional comparison highlights Hungary’s increasingly weak position. Polish households now enjoy a consumption level equivalent to 88% of the EU average, while Lithuania stands at 87% and Slovenia at 86%. Over the past decade, several Central and Eastern European countries have overtaken Hungary, which appears to be falling behind some of the region’s most dynamic economies, writes HVG.

What are the reasons behind this?

Economists point to a number of structural factors behind Hungary’s poor performance. A relatively large share of the country’s GDP is devoted to investment, leaving less room for household consumption. At the same time, household incomes and purchasing power remain below the EU average. Consumer spending has also been restrained by comparatively low levels of borrowing and more cautious spending habits than those seen in several other European countries.

Eurostat also released updated figures on GDP per capita, one of the most widely used measures of economic development. Hungary performs somewhat better in this ranking, but still remains in the lower tier of EU member states. In 2025, Hungary’s GDP per capita stood at 76% of the EU average, placing the country 23rd out of 27 member states.

Read also: Hungarian forint breaks records, but how long can the surge last?

Most of our neighbours are outrunning us

Romania and Croatia have now moved ahead of Hungary, while only Slovakia, Latvia, Greece and Bulgaria recorded lower GDP per capita figures. This marks a significant shift compared to the years following Hungary’s accession to the European Union, when the country was positioned more favourably within the region.

Luxembourg once again topped the consumption ranking, with Actual Individual Consumption reaching 145% of the EU average. Germany, the Netherlands and Austria also remained among the bloc’s most prosperous countries, underlining the persistent gap between the EU’s wealthiest western economies and many of its eastern member states.

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