Hungary’s retail sector has been expanding for the 27th consecutive month, Minister for National Economy Mihály Varga said, commenting on the latest retail sales data compiled by the Hungarian Central Statistical Office (KSH) in the month of September. As the Minister pointed out, turnover growth was mainly attributable – besides solid economic growth, record-high employment and rising wages in real terms – to certain Government measures such as the phasing out of forex loans and introducing a family-focused tax regime.

Mihály Varga highlighted these positive data at a conference organized by the National Association of Entrepreneurs and Employers (VOSZ) to celebrate World Trade Policy Day, where he also presented certificates of excellence for remarkable achievements in the promotion of trade.

KSH statistics show that Hungarian reforms are working. The volume of sales was up in September by 5.1 percent year-on-year and it increased by as much as 5.9 percent year-on-year in the initial nine months of 2015.

In the opinion of the Minister, the most significant result of retail sales growth has been the revival in hiring. While in 2010 and 2014 the number of employees at retail enterprises with at least five employees averaged 183 thousand, in the period January-July 2015 this indicator rose by 4000, to 187 thousand. Payrolls increased in spite of the restrictions on Sunday shopping, he stressed. This confirms that the timing of the introduction of the measure, which secured Sunday as work-free for retail employees, was right, as rising demand has required more retail staff even for limited opening hours, he added.

Analysing changes in shopping attitudes Mihály Varga also highlighted the increasing weight of the online retail sector. Hungary’s e-retail volume growth is outstanding even from a European perspective and it foretells robust growth also for coming years, he said.

Through pension and taxation reform, the optimization of fiscal management and firm measures against the grey and black economies the government has reduced the economy’s vulnerability to external shocks, cut general government debt and kept the fiscal deficit below 3 percent of GDP for several years, he stated.

(Ministry for National Economy)