Poverty survey: 2.5-3 million Hungarians might be considered poor

Half of the Hungarian population has seen its purchasing power decline in the past three years, with nearly two-thirds (64 percent) of households able to finance their everyday expenses only with considerable effort, according to the latest poverty survey by the Equilibrium Institute (Egyensúly Intézet).

More money is needed to maintain an average life than a year ago

Respondents of the poverty survey of the Equilibrium Institute said that today, a net monthly income of HUF 250,000 (EUR 630) is needed to sustain a scarce lifestyle, while HUF 400,000 (EUR 1,008) net per month is needed to maintain an average standard of living – this is HUF 50,000 (EUR 126) more than in 2023.

Almost half of Hungarians today, 45 percent, cannot provide the necessary financial conditions for a meagre living, according to the survey. 31 percent of respondents have a net income above HUF 250,000 (EUR 630) but below HUF 400,000 (EUR 1,008) net – they can live above the minimum, but still not completely comfortably. All in all, more than three-quarters of respondents (76 percent) fall below the income level needed for an average life.

Compared to 2023, in spring 2024, 11 percentage points more people, 24 percent in total, fell in the income bracket considered to be average or above average. There is therefore a slow improvement in the income structure in this respect, says the Equilibrium Institute. Still, only a tenth of respondents felt that they are living in good financial conditions and that they have no problems with everyday expenses.

Moreover, although poverty levels in Hungary have fallen over the past decade or so, as the Institute points out, the country remains one of the poorest in the European Union, both in terms of GDP and purchasing power parity.

2.5-3 million Hungarians (a quarter to a third of the population) might be considered poor. Roughly half of the people (45-50 percent) can live on their income and maintain a balanced lifestyle, and only 15 to 20 percent of the population have no problems with everyday expenses, are able to save from their income, and could easily cover an unexpected expense.

Source: Pixabay / Frantisek_Krejci

A third of parents surveyed had to eat less to feed their children

Half of Hungarians feel that their purchasing power has decreased over the past three years. They say that they were most affected by price rises and the emergence of new expenses (e.g. health care costs). Only 14 percent reported positive developments in terms of purchasing power.

In response to inflation, 46 percent of respondents regularly looked for low prices and promotions when shopping. 9 percent often and 18 percent sometimes did not eat meat because of high prices. 38 percent had to eat less than three meals a day, 37 percent had to cut back on heating in some cases, while 31 percent had to rely on some kind of aid to put food on the table. According to the poverty survey’s data, a third of parents, 34 percent to be exact, had to go hungry sometimes to feed their children.

Overall, it is clear that inflation has had a significant impact on the daily lives of Hungarians.

For many, a sudden expense is an insurmountable problem

The poverty survey also found that almost two-thirds (64 percent) of Hungarian households can only finance their everyday expenses with difficulty. Almost one-third of those asked would have trouble paying an unexpected expense. 39 percent of people would find a sudden expenditure of HUF 100,000 (EUR 250) a great complication but could manage it on their own. However, 32 percent would not be able to cover such a sudden expense at all.

Between November 2023 and May 2024, people have become much more vulnerable in terms of poverty: the proportion of those who would not be able to pay a sudden bill of HUF 100,000 has increased by 7 percent.

Perceptions and outlook for the future

31 percent of respondents feel uncertain about their financial situation, but the majority of Hungarians (54 percent) are confident about the near future, as they see no chance of financial instability in the next few months. At the same time, 75 percent of Hungarians expect their household income to stagnate. As for the long-term, the majority are typically pessimistic.

Hungarians are most concerned about financial vulnerability in old age: 40 percent are somewhat and 21 percent are very worried about their ability to maintain an adequate standard of living in retirement. This is closely followed by fears about unexpected expenses: 38 percent are somewhat worried and 22 percent are very worried about not being able to cope with sudden costs, such as a broken boiler or the family car breaking down. 51 percent are worried about food prices rising.

Poverty survey methodology

The poverty survey was conducted by face-to-face interviews with a representative sample of 1,000 people. The respondents represent the population aged 18 and over in the country. The polling data may differ by up to plus/minus 3.2 percent from what would have been obtained if all eligible persons in the country had been interviewed. The survey was conducted in May 2024.

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Source: Egyensúly Intézet