Hungary Retail Woes : June continued Hungary’s shopping woes. The Central Statistics Office (KSH) reported on August 4 that retail sales fell 7.8% from previous year. Seven months of declining sales. While EU inflation is greatest, this drop has occurred. Families and consumers are increasingly cautious.
The calendar-adjusted results show that the effect was significantly greater. 8.3% decreased. The 0.7% rise from May to June may suggest a change in direction. Despite a bright spot, shop sales fell 10.3% in the first half of the year.
In June, all major shop groupings declined. HUF1.56 trillion4 billionwas produced. 9.2% more than previous year. Due to price inflation of almost 20%, the boost in numbers was not visible. Food sales were 49%, non-food sales 35%, and gas station sales 16%.
Food sales had some encouraging news despite challenging times. Food sales may have decreased less in June due to slower food price increases. In July, the government launched an online pricing monitoring system, requiring major businesses to deliver 15% cuts in August. These initiatives have reduced shop pricing.
Read More: Blockchain in Costa Rica: Unveiling Blockchain Jungle 2023
Food sales in June dropped 4.8% from previous year. This is an improvement above last month’s 7.3% drop. This positive improvement is even more significant than March’s 10.3% decline. However, pre-election expenditure may skew figures.
Sales, excluding food, were up. In June, the drop was 4.3% instead of 10%. This pattern suggests a wind shift that might stabilize the course.
Fuel sales fell 24.2% annually. Fuel price caps caused this. After incorporating these oddities, the discrepancy between 2021 and 2022 gasoline sales was not large.
Hungary’s retail industry faces economic and political changes as it adapts. The changing climate may need industry adjustments in the next months.
Our Reader’s Queries
Is Hungary financially stable?
Hungary’s economy has experienced a decline for four consecutive quarters, with a 2.4% year-on-year fall in real GDP during the second quarter of 2023. The downturn can be attributed to a combination of factors, including high inflation, stricter fiscal and monetary policies, and sluggish external demand.
What is the economic situation in Hungary?
Hungary’s economy is on the rise with a GDP of $222.201 billion (nominal, 2024) and $444.595 billion (PPP, 2024). The country ranks 57th (nominal, 2023) and 53rd (PPP, 2023) in terms of GDP. The GDP growth rate is expected to be 4.9% in 2022, 0.5% in 2023, and 3.2% in 2024. The GDP per capita is $21,075 (nominal, 2023) and $43,601 (PPP, 2023).
Is Hungary in a recession?
The technical recession has finally come to an end, but the FY GDP still remains in negative territory. The economy saw a rise of 0.9% q/q (swda) in 3Q23, marking the end of a recession period that began in 2H 2022. This quarterly rebound has helped ease the yearly decline to -0.4%.
What is Hungary’s biggest industry?
With 60% of the GDP, the service sector is a major contributor to Hungary’s economy. The industry is expected to grow even more due to local investments. Manufacturing is also significant, accounting for 30% of the GDP. Additionally, tourism is an important industry in Hungary, providing employment for nearly 150,000 individuals.