In November 2014 and in the initial eleven months of last year the retail sector grew by 5.1 percent year-on-year. Accordingly, the volume of retail sales in Hungary has been on the rise for the 17th consecutive month.

Steady growth is attributable, among other factors, to the increase of wages in real terms, improving labour market conditions, favourable inflationary processes and higher consumer confidence. The Ministry is expecting growth to continue in the coming months, as bank refunds as well as the conversion and phasing out of forex loans may give additional impetus to the sector.

In November 2014, the volume of sales at filling stations was up by 8.6 percent, driven by falling fuel prices. The volume of sales at the national retail network and at mail order and internet retailers was HUF 33bn higher year-on-year. Sales at food and beverages stores increased by 2.7 percent; within that sales were up by 2 percent at food retailers and by 5.6 percent at stores of food, beverages and tobacco products. The non-food sector saw an even larger increase of 6.4 percent: for example, the volume of sales regarding textile, clothing and footwear products soared by 13.5 percent. Sales at stores of second hand products and non-specialized stores were 8.9 percent and 7.2 percent higher, respectively.

The increase in the volume of retail sales is also expected to be also reflected in GDP growth, as in the initial three quarters of 2014 household consumption edged up by 1.6 percent year-on-year. Steadily rising retail sales confirm the success of Government policy aiming to leave as much money at people as possible, increase households’ savings and boost consumer confidence after the economic crisis.

(Ministry for National Economy)