What a shame: Hungary is one of the poorest nations in the EU – latest figures
In the latest release of Eurostat’s annual data on actual individual consumption (AIC), Hungary finds itself in an unenviable position as the second poorest country in the European Union (EU). Meanwhile, its neighbor Austria has surged ahead to become the second richest, signaling a growing disparity within the region.
Measuring actual individual consumption (AIC)
AIC is a crucial metric that measures how much households buy and receive from the state and non-profit institutions. Adjusted for the price level in each country, AIC provides a more nuanced understanding of purchasing power equality. Hungary’s AIC, however, paints a grim picture, standing at a mere 71 percent of the EU average, HVG reports.
Inflation eroding economic gains
Despite a substantial pre-election financial injection of billions by the Hungarian government, the increase in consumption was minimal, with inflation swiftly eroding any surplus. The stark reality is that Hungary’s consumption figure has only marginally risen from 70 percent in 2020 and 2021 to 71 percent in 2022. In contrast, other regional players like Slovakia, Croatia, and Bulgaria have shown more substantial growth during the same period.
Comparative regional growth
Hungary’s slow-moving growth becomes even more evident when compared to its regional counterparts. While Hungary inched up from 70 to 71 percent in AIC, Slovakia made a more significant leap from 71 to 77 percent, Croatia from 68 to 76 percent, and Bulgaria from 61 to 69 percent. This discrepancy underscores Hungary’s struggle to keep pace with its neighbours.
Shifting wealth dynamics
At the top of the EU wealth ladder, Luxembourg remains the wealthiest country, though its relative standing has slightly diminished. Notably, Austria has made significant strides, ascending to the second position, tying with Germany at 118 percent of the EU average. This shift is remarkable, given Austria’s fifth-place standing just a year ago.
GDP per capita: A different perspective
While Hungary faces challenges in AIC, its GDP per capita tells a slightly different story. Ranking sixth or seventh in the EU, Hungary has moved from 75 percent of the EU average to 76 percent in 2022. However, this improvement is modest, and the country still lags behind leaders like Luxembourg, Ireland, Denmark, the Netherlands, and Austria in GDP performance. Read about more detailed insights of recent GDP data in our article HERE.
Understanding disparities
The disparity between GDP and AIC figures illustrates the nuanced nature of economic analysis. Hungary’s GDP may appear relatively stronger due to manufacturing activities, yet its citizens’ living standards, as reflected in AIC, are lagging behind. As the Hungarian government grapples with economic challenges, a comprehensive approach is necessary to address the multifaceted issues affecting the country’s prosperity within the EU.
We’ve also covered that Eurostat is engaging with the Hungarian Central Statistical Office (KSH) to discuss the calculation method for energy inflation. Concerns are rising about the reliability of Hungarian statistics. Stay informed with the details in this article.
Source: HVG
please make a donation here
Hot news
Hungary’s universities break through in 2024 Shanghai Rankings—Which ones are top 200?
Slovak PM Fico may sacrifice his good relations with PM Orbán to keep his governing coalition
Orbán cabinet: Hungary can receive 6.61 billion euros from the EU in 2025
Experience the magic of Zagreb’s Christmas market with a special train from Hungary!
PHOTOS: Amazing Roman Catholic parish house inaugurated in Transylvania
PM Orbán: Patriots in majority in the Western world with Trump, left unable to govern
14 Comments
Don’t be ridiculous. Hungarians’ income may be below the European average but our cost of living is also. Take a look at how much the Germans or the Dutch pay for everything from groceries to electric, and then compare it to our prices. The grass is NOT always greener…
First time i add a comment here. As a foreigner that arrived in 2017 to Hungary, it is just sad to find how the country is moving backwards. Taxes are high here, family policies are not working, corruption is there, even when the politicians do not accept it. It is amazing that after all the investment that foreign companies are doing, and the “highest average salaries” in the history of Hungary the country is going worse and worse. Please stop blaming the EU for all national problems and start to work for the sociaty. Every year there are less and less hungarias in the country, what kind of future do you want to have?
Orbánistan….
In Canada if a rock fell from the sky the national government and PM Trudeau would be blamed for it. In Hungary there is no shortage of outside forces to blame for the problems of the people. Fidesz has kept up this propaganda campaign of excuses for the misery of Hungarians. They have been in power for thirteen unlucky years. It’s time to point the finger of blame where in any normal democracy it would be pointed at and that is the government in power and disastrous leader Orban. No more excuses.
Steiner Michael, take your “Hat” off.
Showing that Fidesz Membership Card – again.
We travel out of Budapest, to Germany, Austria, Italy and Switzerland to each of these country’s for holidays, at least (2) twice yearly.
Switzerland far exceeds in cost than Germany, Austria and Italy.
We take apartments for our stays, in the centre of the cities we visit, being, Erfurt, Vienna, Milan and Zurich.
We don’t need to budget our expenditure but we just shop, as we do in Budapest, District V, at the markets and supermarkets, the exception being Erfurt, we shop at Kaufland Supermarket, magnificent place to shop.
We are “frugal” in our shopping, just not buying “off the shelf” at eye level, but looking at the bottom and higher shelves, as it can be a correct examination process.
We eat quality as we enjoy to “cook in” and do things 90% of the time our way.
Respectfully, to you I say Steiner Michael, we could live from a budget perspective for food & groceries very much lower in expenditure in the cities I refer that in numbers of cases are lower, than the EXPLOSIVE prices we have seen in Budapest that still may have an up-side, especially in the category of needs, on supermarket and “other” shelves that are at a humongous un-justifiable elevated price.
Your man Orban – think having the highest VAT of 27% in the EU – “screwing” Hungarians on the subject of the article is WRONGFUL ?
My answer – YES and Big Time.
Jose Hernandez – Concur.
The CANDOUR of you pen muchly appreciated.
We arrived 2016 and what we have witnessed, the nadir, the rapid on-going erosion of the brand name Hungary, makes us crestfallen.
There are a multitude of gargantuan problems broadsheet across the width & breath of Hungary, not just in the “Shambles” that factually is our Economic & Financial position, that will worsen.
What “grieves” us, is the on-going dismantling of DEMOCRACY, that trends muchly to a Communistic Dictatorship styled Government.
I wrote “Broadsheet” that the deepness in important areas of the componentry of Hungary, not the Economic & Financial “mess” but in “other” categories that have either collapsed or near that position, and will not be reversed in there trend.
The Orban Government have been in Power nearing 15 years and what has Hungary got to show for 15 years of this Government ?
What is the BIG Picture of Hungary at this point in time ?
It’s deepening worrying times ahead for Hungary, that I believe will WORSEN.
Michael Steiner is wrong. Of course Hungary is much more expensive when it comes to basically anything except rent. But that is natural for any small country (see for instance the video about small countries on VISUALEKONOMICS EN). Just like Germany or the UK cannot outcompete against the USA. A single market of >300 Million western people.
Orbán is not to blame for Budapest. It’s the woke opposition who’s ruling. However I’ve seen the contrast to Poland which is leapfroging into the right direction with lots of multinationals banking their eastern future there.
Hungary could do better. A lot of money is not prioritized. Who cares about fancy museums when you could give people a smooth ride when they come in the country for the first time by airport shuttle. That stuff
Yes, Hungarians are to be pitied. Most families only have one car. Many Hungarians only manages one vacation in a foreign land per year. Many Hungarians only have one vacation property in Hungary, while Zelensky has two in Italy. The % of homeless is relatively small in Hungary. Crime rate is low compared to western EU countries. Women and Jewish people are safe because of a closed border. Homes were and are heated and there is even enough energy at affordable price to cook dinner. The food produced in the country is safe from chemicals. Yes, Hungarians are to be pitied, one thousand times.
Now, an Illionois small town was on the new a few days ago. The residents said that they have to make a choice between buying gas to go to work and food. Because of US open border, Fentanyl is killing America’s young. San Franciso streets are covered with homeless on drugs, using the street as washroom facilities. There are similar landscapes in all large American cities. Illegal migrants freely murder American citizens in some cities and states because of their sanctuary state. Hard working Americans are forced to support 8 million illegal aliens because of Biden’s policies. Many North American families do not travel on their holidays, the families stay home because they simply cannot afford to travel.
One has to pity foreign travelers visiting Hungary. These travelers have to pay the going rate established in Europe. Why should a Hilton be cheaper in Hungary than in Vienna? The service industry is much better in Hungary than in Vienna. Visitors to Hungary are welcomed while they are tolerated in Vienna. It is incredible the insults French citizens throw at American visitors. In France no North American visitor gets waited on until all French, even the late comers are fed first. Visitors to Hungary should appreciate the clean and safe country.
Hungarians should get first price for complaining. They are never happy or contented. These people should try to live in other countries and make ends meet on their wages. Middle class families are struggling. Finally, it is not the income that counts but the buying power on the home market. When will the complainers will realize that they should just say thank you to the FIDESZ Government.
I am not the least bit surprised! Hungary having the World’s highest consumption tax at 27.5% will certainly be reflected in Hungary having the lowest individual consumption index in the EU! Lower your consumption tax, increase your consumption – Simple!
I am not the least bit surprised! Hungary having the World’s highest consumption tax at 27.5% will certainly be reflected in Hungary having the lowest individual consumption in the EU! Lower your consumption tax, increase your consumption – problem solved! Simple!
Strange, Comments from foreigners being very disstatisfied with the way the country is lead, democratically. If it’s all so bad, why not just pack up and leave? Let Hungary for the Hungarians. They haven’t had much of that,since 1541.
Lies, damned lies and statistics. The enemies of Hungary try to use them to paint a bleak picture when in fact, Hungary is more safe than most countries, million of tourists visit to see its wonders, home ownership is high, and most people support the government and its family-friendly policies.
Foreigners who don’t like it are free to go home, where everything is so much better.
Lies, damned lies and statistics.
Beg to DIFFER: you are right.
I have experience with the living standards in the Netherlands. Supermarkets are much cheaper in essential products, especially the discounts of A brands. Which happens often.
In the last few years, prices in Hungary want up and a lot of products are the same price or sometimes even higher than in the Netherlands. So Dutch prices and a Hungarian salary.
Family and friends can hardly survive.