Last year, the volume of retail sales was up by 5.2 percent year-on-year, the highest growth figure since 2004.
Retail sales have been on the rise for one-and-a-half years now, mainly as the result of higher disposable incomes of households: due to family tax allowances, some 900 thousand parents received some HUF 197bn, but wages in real terms also increased by more than 3 percent. Steadily improving labour market conditions, favourable inflationary processes and higher consumer confidence also underpinned growth in 2014.
In December 2014, the volume of retail sales rose by 5.6 percent in comparison to the corresponding period of the previous year. The volume of sales in December was 3 percent higher at specialized and non-specialized food retailers; within that category, at stores of food as well as food, beverages and tobacco products sales turnover increased by 2.5 percent and 5.3 percent, respectively, compared to December 2013. Volume growth was even larger, 7.4 percent, at the non-food sector: sales of textiles, clothing and footwear items increased, for example, by 13 percent. In December 2014, the volume of sales at filling stations was 11 percent higher, thanks to the 10 percent drop in fuel prices over the past one year. Turnover at the national retail network and at mail order and internet retailers was HUF 34bn higher year-on-year. Sales at non-specialized stores and stores of second hand products were 8.2 percent and 7.2 percent higher, respectively.
The increase in the volume of retail sales is also reflected in GDP growth, as in the initial three quarters of 2014 household consumption edged up by 1.6 percent year-on-year. Sales data of recent months repeatedly confirmed that the retail sales trend reversal that took place 18 month ago is persistent.
The Ministry is expecting that the positive trend will stay unbroken in the coming months, as the compensation of bank clients and the phasing out of forex loans will provide additional impetus to the sector’s expansion.
(Ministry for National Economy)
