The volume of retail sales grew dynamically, by 6 percent year-on-year, in the month of May 2017. Thus, the sector has been expanding for 47 months in a row.

The Government-initiated six-year wage agreement, which stipulates minimum wage and guaranteed minimum wage increases as well as payroll tax cuts, boosts consumption through household income growth, and thus it substantially contributes to retail sales and eventually GDP growth.

In May 2017, the volume of sales was up by 10.3 percent at non-food retailers, by 2.3 percent at specialized and non-specialized food retailers and by 4.3 percent at filling stations.

The rate of growth in the observed period was more than double the average rate registered within the European Union.

Since January 2010 and the January 2014, consumption grew by 19.4 percent and 16.4 percent, respectively, in Hungary. Steady consumption growth, underpinned by Government incentives, signals further increases in coming months.

(Ministry for National Economy)