Second-lowest standard of living in Hungary in the entire EU

According to the latest Eurostat statistics, only people in Bulgaria have worse living standards than Hungarians if we look at consumption data. 

On Monday, Eurostat released the 2021 data that perhaps best reflect actual consumption in each EU country. Actual individual consumption, abbreviated as AIC, refers to all goods and services consumed by households. It encompasses consumer goods and services purchased directly by households, as well as services provided by non-profit institutions and the government for individual consumption (e.g., health and education services) – reports Eurostat. The data shows a good indication of the level of material well-being in each EU Member State. Numbers reveal where each member state stands if the EU average is taken as 100%. – writes qubit.hu.

Where do member states stand this year?

In 2021, Luxembourg proved to be the most prosperous EU Member State. On the other end of the scale, Bulgaria stands in last place, while Hungary is in second place at the bottom of the list, along with Slovakia.

However, regarding actual consumption, figures in Hungary have risen from 64 percent in 2011 to 70 percent in 2021.

The chart above shows the way individual consumption has changed in EU countries:

• Romania strengthened from 54 to 82 percent,
• Poland from 73 to 84,
• Croatia from 62 to 73,
• Czech Republic: from 76 to 85,
• Slovakia: dropped from 75 to 70 percent.

Regarding prosperity growth, with a 6 percentage point increase, Hungary has performed quite poorly within the V4 region. Meanwhile, Romania has undergone significant developments over the past decade. In the southern member states, a tendency of fallback can be noticed. Greece fell from 87 percent of the EU average to 76 percent, Italy from 109 to 97, and Spain from 91 to 85. While the eastern member states started to catch up with the EU average, the southern ones started to lag behind.

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Actual individual consumption in purchasing power parities

According to the map above, Hungary belongs to those EU countries that score more than 25 percent below the EU average. However, it should be noted, that the statistics do not show how individual consumption varies in the country. In some cases, the elite may produce high numbers while in reality, the poor do not have any food. It is also possible that some countries only prosper because of loans. In addition, people might invest their incomes, which the statistics also fail to take into account.

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Source: Eurostat, qubit.hu