Published: December 22 2023
In this blog post, we will discuss the decline of Hungary's living standards in comparison to neighboring countries. We will explore the factors contributing to this decline and the current rankings of Hungary in terms of living standards.
Factors contributing to the decline
The AIC index, which measures the standard of living based on household purchases and the price level, reveals that Hungary has been unable to maintain its position compared to other post-socialist countries. Despite coming closer to the Western standard of living, Hungary has been overtaken by countries such as Slovakia and Romania in terms of living standards.
Missed opportunity with EU membership
Joining the European Union (EU) was a historic opportunity for Hungary to improve its living standards. However, Hungary's performance has been described as "amazingly bad" by Menedzment Fórum. Despite starting from a favorable position in 2004, Hungary has lost its advantage over Slovakia by 2010 and was surpassed by Romania in 2018.
Current rankings of Hungary
As of now, Bulgaria is the only neighboring country lagging behind Hungary in terms of living standards. Hungary has a value of 71 on the AIC index, while Bulgaria's value stands at 69.
Conclusion
The decline of Hungary's living standards compared to neighboring countries raises concerns about the country's ability to harness the benefits of EU membership. It is crucial for Hungary to address the factors contributing to this decline and prioritize efforts to improve the standard of living for its citizens.
Questions & Answers
What is the AIC index? The AIC index is a measure of the standard of living based on the goods and services purchased by households, balanced by the price level of the given country.
How does Hungary's living standards compare to neighboring countries? According to a report on Menedzment Fórum, Hungary has experienced a decline in living standards compared to its neighboring countries. While Hungary was initially close to Western standards of living, other post-socialist countries have surpassed it. Slovakia overtook Hungary by 2010 and Romania overtook Hungary by 2018. Currently, only Bulgaria lags behind Hungary in terms of living standards.
When did Hungary join the EU? Hungary joined the EU in 2004.
Did Hungary take advantage of joining the EU? According to the report on Menedzment Fórum, Hungary was unable to take advantage of the historic opportunity offered by joining the EU. The report describes Hungary's performance as "amazingly bad" in this regard.
What was Hungary's position in terms of living standards in 2004? In 2004, Hungary started from a particularly good position in terms of living standards.
Which country overtook Hungary in terms of living standards by 2010? By 2010, Slovakia had overtaken Hungary in terms of living standards.
Which country overtook Hungary in terms of living standards by 2018? By 2018, Romania had overtaken Hungary in terms of living standards.
Which country currently lags behind Hungary in terms of living standards? Currently, only Bulgaria lags behind Hungary in terms of living standards, with a value of 69 compared to Hungary's 71.
