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Jun 07, 2017

Hungary's retail sales increase by 3.5% in April

Hungary's retail sales have increased for the 46th consecutive month, according to new figures released by the Hungarian Central Statistical Office (KSH)

Hungary's retail sales have increased for the 46th consecutive month, according to new figures released by the Hungarian Central Statistical Office (KSH). 

The Hungarian government recently said that job growth and low inflation led to a rise in retail sales right across Hungary.

According to official figures, retail sales grew by 3.5 percent in April, which followed a 3.4 percent increase in the first quarter of 2017.

Due to a rise in the minimum wage, average net wages also increased by 8.2 percent. This, coupled with an inflation rate of 2 percent, resulted in a higher disposable income at households.

The volume of sales of non-food items increased at a higher rate than that of foods and fuels. The number of building permits has also increased by 89 percent year-on-year, and the number of newly built homes was also up by 47 percent this year, compared to the same period last year.

The government expects these figures to continue on an upward trend over the next 45 months and attributes the rise not only to low inflation but also the government-initiated six-year wage agreement.

The six-year wage deal has fueled consumption through rising wages and VAT reductions, which in turn has contributed to GDP growth.