Surprising: Romania more developed than Hungary, people may live better

life expectancy at birth romania
Photo: depositphotos.com

Eurostat released its latest report on gross domestic product (GDP) per capita, measured in purchasing power standards, yesterday. According to the new data, Romania has surpassed Hungary, indicating that Romanians may enjoy a higher standard of living as they can afford more with their salaries compared to Hungarians. Hungary stands at 76% of the EU average.

According to the Eurostat, “in 2023, gross domestic product (GDP) per capita expressed in purchasing power standards ranged between 64% of the EU average in Bulgaria and 240% in Luxembourg.” These figures are based on Eurostat’s flash estimates of purchasing power parities and GDP for 2023, released yesterday. See their chart below:

Eurostat Romania Hungary development
Source: Eurostat

“Luxembourg and Ireland had the highest levels (140% and 112% above the EU average, respectively), well ahead of the Netherlands (30% above the EU average), Denmark (+28%), and Austria (+23%),” Eurostat highlighted.

Romania surpasses Hungary for the first time

At the other end of the spectrum, Bulgaria (36% below the EU average), Greece (-33%) and Latvia (-29%) were positioned.

Hungarians often draw comparisons between themselves and their Eastern neighbour, Romania. In this instance, Romania has outpaced Hungary. The GDP per capita, expressed in purchasing power standards, stood at 78% in Romania, while Hungary lagged at 76%. 2023 marked the first year Romania managed to overtake Hungary, as reported by portfolio.hu. While there may be revisions, the Hungarian media outlet does not anticipate Romania falling behind Hungary as it did in 2022.

train station keleti railway máv travel strike hungary budapest
People at Keleti Railway Station in Budapest. Photo: Daily News Hungary

In Hungary, the economy contracted by 0.8% in 2023. Consequently, there is little anticipation of a rise in the GDP per capita, expressed in the purchasing power standards index. As a result, Croatia has caught up with Hungary, and Slovakia is only 3% behind.

A lot depends on the methodology, thus the index does not perfectly reflect the economic development level of a country. For instance, Luxembourg’s considerable divergence is attributed to its unique economic structure.

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