Job growth and low inflation leads to increase in retail sales
Retail sales in Hungary have risen by a staggering 20.7 percent since January 2010 and by 17.6 percent since the beginning of 2014
The Hungarian government has said that job growth and low inflation has led to an increase in retail sales right across Hungary.
According to the Ministry for National Economy, retail sales grew by 3.3 percent in March 2017 and by 3.4 percent in the first quarter of 2017. Data adjusted for calendar effects show growth of 5.4 percent, well above the EU average of 2.5 percent.
Overall retail sales in Hungary have risen by a staggering 20.7 percent since January 2010 and by 17.6 percent since the beginning of 2014.
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.
The volume of sales at non-specialized food, beverages and tobacco product retailers was up by 3.7 percent, while that of non-food retailers increased by 7.6 percent year-on-year.
Sales at textile, apparel and footwear stores increased by 12 percent, they were up by 8.3 percent at stores selling books, computers and other household equipment. Sales at other non-specialized stores gained 14 percent year-on-year.
The ministry also said that the tourism industry, along with many other sectors are experiencing growth right across Hungary.