In 2015, the volume of retail sales grew by 5.6 percent year-on-year, the highest figure since 2004.

Data from the month of December show an increase of 4.5 percent year-on-year, and thus the Hungarian retail sector posted the fifth highest growth figure within the EU. (Unadjusted data show 5.0 percent growth.) The purchasing power of households has been boosted by low inflation, rising wages, improving employment figures as well as by Government measures such the phasing-out of forex loans and increasing family tax allowances.

The volume of retail sales was up in December 2015 by 3.4 percent at food and unspecified food stores, 6.4 percent at non-food stores and 3.7 percent at filling stations.

In the observed period, turnover at the national retail network as well as mail order service providers totalled HUF 954bn at current prices. Food and non-specialized food retailing accounted for 47 percent of total volume, while non-food retailing and filling stations constituted 41 percent and 12 percent, respectively, of total sales volume within the retail sector.

In the entire year, the volume of sales grew by 3.4 percent at food and non-specialized food retailers, by 7.6 percent at non-food retailers and by 7.1 percent at filling stations.

Outstanding sales data from the past 31 months confirm that households’ financial confidence has improved as they had come to view the income outlook in a much more positive light. The multi-month upward sales trend shows that consumers have adapted their spending habits to restrictions on Sunday shopping.

In 2016, further retail sales growth in anticipated, thanks to several factors, such as the phasing-out of forex loans, rising real wages, record-high employment figures, higher family tax allowances for parents with two children, the lowering or abolishing of the fees of certain public services and duties, the lowering of VAT on pork from 27 percent to 5 percent as well as the reduction of personal income tax by 1 percentage point.

(Ministry for National Economy)