Hungary to fall behind Romania within 1-2 years!?
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If the current trends remain, here is how Romania will precede Hungary in two aspects in 1-2 years.
This is why Hungary’s economy developed quickly
According to Piac és Profit, Hungary could thank its fast development to the EU funds it received between 2010 and 2020. The EU contributed to Hungary’s economic development, and consequently 5 per cent of the country’s GDP. Meanwhile, the average GDP growth was only 2.3 per cent. If we omit the first year of the coronavirus, that number rises to 3.1 per cent. However, Hungary is far from the EU average even with that.
GKI Economic Research Co said that Hungary’s GDP per capita was 39 per cent of the EU average. That rose to 50 per cent by 2021. These numbers are 64 and 76 per cent in terms of purchasing power parity.Â
In the case of Romania, their GDP per capita was 62 per cent of Hungary’s in 2010, which grew to 69 per cent by 2021. In purchasing power parity, these numbers are 78 and 96 per cent. That means that the average Romanian citizen’s standard of living is almost the same as an average Hungarian’s. That would have been unimaginable in the 1990s or the 2000s. Furthermore, the numbers show that Romania’s convergence to the EU average was quicker than Hungary’s in the last decade.Â
Lenny Kuhne
This is how Romania will reach Hungary
Based on the analysis of the GKI summed up by Piac és Profit, how ordinary citizens feel about their economic situation is more important than crude economic numbers. The company analysed the financial state of parents working full time, earning 100 per cent of the national average, and raising two children. Furthermore,
GDP PPP per capita in Romania already passed Hungary in 2020 as WB said … but in 2023 you will see the real difference mainly becasue the gdp ppp per capita was measured taking into account a higher population for Romania, but with the latest census made in 2022 there will be a new figure to take into account wich is less than previous data … so GDP PPP per capita is above Hungary, also the minimum net salary in 2023 will be higher than Hungary … the real boom haven’t even started mainly because Romania still lacks infrastructure … but from 2025-2030 the Real Boom will happen, when infrastructure projects will mostly be finalised, also OECD and Schengen Area membership.