Hungary’s retail sales have continued to rise as in September 2014 and in the initial nine months of the year the sector expanded by 4.5 percent and 5.1 percent, respectively, in comparison to data compiled one year ago. Commenting on the latest statistics of the Hungarian Central Statistical Office (KSH), Minister of State for Parliamentary Affairs Béla Glattfelder said that this has been the fifteenth consecutive month when the volume of retail sales increased and this remarkable achievement has also contributed to sound and sustainable economic growth.

In the opinion of the Minister of State, Hungary performs well even from an EU perspective: the 4.5 percent economic growth places the country among Europe’s top performers as the pace of expansion well exceeds the 1 percent average within the EU. Low inflation and high consumer confidence have boosted household consumption. In addition, a record-high employment rate, rising purchasing value of incomes and public utility price cuts have also fuelled growth. Retail sales still have growth potential as banks’ refunds and the phasing out of forex loans will leave more resources at people, Béla Glattfelder added.

In September 2014, sales were up by 2.4 percent at stores of food, beverages and tobacco products, by 5.9 percent at non-food retailers and by 7.6 percent at filling stations. In the observed period, the combined volume of sales (at current prices) was HUF 35bn higher year-on-year at the national retail network and at mail order and internet retail service providers.

Béla Glattfelder stressed that retail sales growth will continue in the coming months, as economic activity is set to accelerate and that will result – thanks to rising incomes – in higher household consumption and retail sales. Therefore, due to a sound economic structure with higher exports as well as domestic consumption, GDP growth is expected to be steady also in 2015.

(Ministry for National Economy)