In August 2017, the volume of retail sales grew by 4.7 percent according to both unadjusted data and data adjusted for calendar effects. Thus, the sector’s upward trend has been unbroken for 50 months. In comparison to January 2010, the volume of retail sales has increased by more than 22 percent in Hungary.
Within the sector, the sales volume at non-food stores was up by 7.9 percent year-on-year, in line with the four-year growth trend of this category. The volume of sales at retailers of food, beverages and tobacco products and non-specialized stores grew by 2.9 percent, while that of filling stations was up by 2.6 percent in the observed period.
Consumers are carrying out purchases which they postponed during the crisis, and demand for durable goods has been on the rise. The rising volume of household loans also shows that the financial situation of Hungarian families has been improving.
The growth rate of Hungary’s retail sector has again exceeded the 2 percent average growth observed in the EU.
Along with VAT cuts, the Government-initiated six-year wage agreement is also contributing to consumption growth as it adds to family income growth. The fact that wages increased by 12.7 percent in the period January-August 2017 also vindicates the agreement.
As we wrote, Hungarians have one of the lowest salaries in the EU. Here are the latest statistics.
Source: Ministry for National Economy