Consumer confidence has been positive for at least the past 30 months in Hungary and thus households’ propensity to spend reached levels last seen at the beginning of the 2000s, Deputy State Secretary for Priority Enterprise Relations Zoltán István Marczinkó told public news channel M1, commenting on the latest retail sales data published by the Hungarian Central Statistical Office (KSH).

In November 2015, unadjusted and calendar-effect adjusted data show that the volume of retail sales grew by 4.8 percent and 4.4 percent, respectively, year-on-year. Sales volumes were up by 2.5 percent at food and non-specialized food retailers, 6.9 percent at non-food retailers and by 4.7 percent at filling stations in comparison to last November.

The Deputy State Secretary pointed out that the introduction of on-line cash registers brought a major change in the retail sector in August 2014, and market participants all agree that this measure has significantly improved economic transparency.

Some Government measures – such as the phasing-out of forex mortgages and investment incentives – as well as flat inflation in recent months have also boosted shopping. Disposable incomes at households are expected to continue to rise this year. He also noted that restrictions on Sunday shopping have left no negative mark on retail sales volumes.

Provided these positive economic trends prevail, similarly high economic growth and modest general government budget deficit can be expected in 2016, he stressed.

(Ministry for National Economy)