Hungary wage growth could reach 8-10 pc in 2018

Wages are expected to grow by 8-10 percent in 2018, a consultant for the economy ministry said in Thursday’s issue of the daily Magyar Idők.

“Average wage growth for the whole labour market will certainly be at least 8 percent … and up to 10 percent,” Piroska Szalai, the head of the Budapest Business Development Foundation, told the paper.

Average gross wages rose by around 12 percent in January-October, according to Central Statistical Office (KSH) data.

Next year’s wage growth is likely to be lower than this year’s because of big public sector pay rises, mainly in health care and social services. Public sector wages grew by around 16 percent in 2016.

In its midterm macroeconomic and budget forecast for 2017-2021, the economy ministry projected gross nominal wages rising by 13.1 percent this year and by 9.4 percent in 2018.

Wage growth is expected to slow to 7.7 percent in 2019 and to 6.7 percent in 2020.

Inflation is expected to average 2.4 percent this year and 2.7 percent in 2018 before levelling out at 3 percent in the following three years.

Source: MTI