Romanians outperform Hungarians, only the Bulgarians live worse than us

Romanians, Slovakians, and Poles are way ahead of the Hungarians in terms of standard of living, a new research shows. That contradicts the Hungarian government’s communication that Hungary is an economical leader in Central Europe.

Only Bulgarians live worse than us

According to Szeretlek Magyarország, an average Hungarian spends 72% of the EU’s standard level on consumption, which is 16% less than an average Romanian does. Based on the survey by Eurostat, Hungarian food prices neared 90% of the EU’s standard in 2022.

According to the EU’s statistics body, the main reason for the EU-top Hungarian inflation is the skyrocketing food prices. For example, we had to pay 100% more for butter and bread in December 2022 than in January. August marks the 12th month when the Hungarian inflation is the European Union’s highest.

In 2022, food prices grew to 89.9% of the EU average. In Austria, they stand at 107%, and in Slovakia, at 102%. But in Poland, they reach only 74% while that exact figure is 72% in Romania. According to the GKI, we can buy less with Hungarian salaries compared to Romanians or Slovakians.

• Hungarians do their grocery shopping in Romania – Read our article HERE

Romanian government made better choices

The research data also shows that the standard of living was only worse in Bulgaria in the European Union. Romania was well beyond Hungary in 2010. However, by 2022, they preceded Hungary concerning the level of salaries and, in 2023, that difference will continue to widen. And that is true of the Poles, as well. László Molnár, the CEO of the GKI Economic Research Co., said an average Hungarian spent 16% more on consumption than an average Romanian.

According to G7, a Hungarian economic news outlet, the development of the Romanian IT sector, aided by unprecedented state supports since 2001, contributed a lot to the catch-up process. Romania abolished the personal income tax for individuals working in the IT sector, which basically made Romania Europe’s IT hub. Today, Kolozsvár (Cluj Napoca) in Central Transylvania hosts 13,000 IT companies.

According to calculations, the PIT the country lost returned with the investments of foreign IT companies. Hungary chose a different path. The Orbán cabinet is targeting to develop the processing industry. They aim to attract German carmakers and Chinese battery producers. However, the latter doesn’t create high-added-value jobs. Instead, the government helps them import Asian guest workers because skilled Hungarians leave the country to work in West Europe, many in the IT sector.

• How did the Romanian economy outperform the Hungarian one?