Hungary’s retail sales volume has been on the rise for the 11th consecutive month and the increase of almost 5 percent registered in May is the third best growth figure within the European Union. The rebound in household consumption has been the result, among others, of the cuts in utility charges, family tax allowances, record-high employment growth, the increase of wages in real terms and improving consumer confidence.

According to data of the Hungarian Central Statistical Office (KSH), retail sales volume was up by 4.9 percent year-on-year, while in the initial five months of the year sales volume jumped by 6.6 percent. Turnover at the retail sector totalled more than HUF 730bn in May 2014, up by HUF 40bn year-on-year. The sales volume at stores of food, beverages and tobacco products and at non-food stores soared by 8.1 percent and 2.6 percent, respectively. Sales at filling stations were up by 1.5 percent compared to May 2013.

In light of the latest statistics of EU member states, Hungarian retail sales growth was one of the most dynamic within the EU, well above the 1.2 percent average and it is the highest among the V4 countries.

The outstanding performance of the retail sector and the steady quarter-on-quarter increases of household consumption show that domestic consumption growth has been firm and continuous. The Government has been aiming to leave as much money at households as possible and to boost their savings. As a result, the Hungarian economy has entered a growth path underpinned – besides exports -- by consumption. The Government is expecting retail sales growth to continue.

(Ministry for National Economy)