Published: December 18 2023
The Hungarian economy ranks as the second poorest country in the European Union, just above Bulgaria, based on consumption per capita. Despite joining the EU in 2004 and receiving EU development money, Hungary has fallen behind in terms of economic prosperity compared to other EU member states.
Consumption per Capita in the EU
According to Eurostat's latest survey, consumption per capita varies significantly across EU countries and regions. The highest consumption per capita is observed in Luxemburg, Austria, and Germany, surpassing the EU average. On the other hand, Hungary ranks second to last, with only Bulgaria having lower per capita consumption. Even Romania, which joined the EU after Hungary in 2007, has surpassed Hungary in terms of economic prosperity over the past two decades.
Ranking and Trends
In 2022, nine EU member states performed above the EU average in terms of consumption per capita. However, Bulgaria ranked the worst, with consumption only at 69% of the EU average. Hungary closely followed with a consumption rate of 71%, indicating a relatively low level of economic prosperity. On the other end of the ranking, Croatia and Latvia also struggled with lower consumption rates.
Factors Influencing Hungary's Economic Situation
Hungary has been facing challenges in its economy, with the highest inflation rate in the European Union. Experts attribute this to increased government expenditures before the elections, the energy crisis, the war in Ukraine, and the import-based Hungarian energy sector. High inflation has resulted in stagnant wages, causing a drastic reduction in consumption among the Hungarian population.
Construction Sector Output in Hungary
In October, Hungary's construction sector output showed a slight increase of 0.1% compared to the previous month, after a significant decline of 6.0%. The buildings segment experienced growth of 2.0%, while civil engineering output slightly decreased by 2.6%. The total output of the construction sector was valued at 660 billion forints, with the buildings segment contributing 61% of the total. However, when looking at the period from January to October, construction sector output fell by 4.2% compared to the base period.
By addressing the ranking of Hungary's economy, identifying key trends, and exploring the challenges faced in the construction sector, we gain a comprehensive understanding of Hungary's current economic situation and the factors contributing to its poor standing within the European Union.
Questions & Answers
How does Hungary rank in terms of consumption per capita in the European Union? Hungary ranks as the second poorest country in the European Union in terms of consumption per capita, surpassed only by Bulgaria.
Which countries have the highest consumption per capita in the European Union? According to Eurostat, Luxemburg, Austria, and Germany have the highest consumption per capita compared to the EU average.
When did Hungary join the European Union? Hungary joined the European Union in 2004.
Have Hungarians become richer since joining the EU? No, Hungarians have not become richer since joining the EU. In fact, consumption per capita in Hungary is still lower than the EU average.
Which countries in the EU have a higher consumption per capita than Hungary? Romania has a higher consumption per capita than Hungary, according to the latest survey by Eurostat.
What is the actual individual consumption (AIC) in Hungary? In 2022, the actual individual consumption (AIC) in Hungary ranged between 69% and 138% of the EU average, with Hungary's consumption being at 71% of the EU average.
What are the reasons for Hungary's high inflation rate? Experts mention increased government expenditures before the elections, the energy crisis, the war in Ukraine, and the import-based Hungarian energy sector as reasons for Hungary's high inflation rate.
Has the construction sector in Hungary been growing? The output of Hungary's construction sector grew by a small margin of 0.1% in October after experiencing a 6.0% decline in the previous month.
What is the current state of the construction sector output in Hungary? In October, the output of Hungary's construction sector was worth 660 billion forints, with the buildings segment accounting for 61% of the total. However, overall construction sector output fell by 4.2% in January-October compared to the base period.
