An alarming process was discovered in Hungarian pensions

In 2023, looking at household incomes and consumption, we continue to experience an unfavorable process – writes the Policy Agenda in its announcement of the 2023. IV. in the summary of the quarterly Economic Development Index. It means thatthe income scissors are constantly opening. The amount of household savings would mean family savings of HUF 13 million on average. However, two-thirds of all earned labor income belongs to the top income decile, as far as capital income is concerned, and 90 percent of it is enjoyed by those who belong to it. At the end of 2023, the solvency of Hungarian households did not improve, around 40 percent of families struggle with payment difficulties by the end of the month, therefore, borrowing increased significantly.

According to bank information, household indebtedness was last this high in 2014. The current 1.11 million credit cards had about HUF 152 billion in debt in 2023, i.e. an average of more than HUF 130 thousand per card. It is a very unfavorable indicator that about 48 percent of this is a type of debt that is not repaid during the maturity period. Beyond this deadline, households are already burdened with very high (usury?) interest.

The practice of making illegal income is reviving. The growing danger of impoverishment became felt. The ratio of the average pension to the average earnings is constantly decreasing, and by the end of 2023 it was barely higher than 50 percent.

In the last month of 2023, the volume of retail trade decreased by 0.2 percent compared to the previous December. Presumably, in the first quarter of 2024, a decline is still expected in important indicators. The favorable 3.8 percent increase in consumer prices in January – although this may give cause for optimism – may be followed by higher inflation in the future.

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