Flash Report on the State of the Hungarian Economy

Gross domestic product (GDP) in Hungary did not change in Q4 2023 based on raw data, but increased by 0.4%  compared to the same period of the previous year when seasonally and calendar adjusted. Compared to the previous quarter, the economy’s performance also remained unchanged based on seasonally and calendar adjusted data.

In Q4 2023**, the economy’s performance did not change based on raw data, but exceeded the same period of the previous year by 0.4% when seasonally and calendar adjusted.

The economic performance increased mainly in the following sectors:

Agriculture
Human health and social care
Information and communication

The growth was counterbalancedby the decline in the following sectors:

Industry
Construction
Part of market services, mainly retail

The economy’s performance did not change compared to the previous quarter.

In 2023, GDP fell short of the previous year by 0.9% based on raw data and by 0.8% when seasonally and calendar adjusted.

Retail trade turnover in Hungary decreased by 5.4% compared to the same period of the previous year, while it increased by 0.8% compared to the previous month.

In Q4 2023, the economy’s performance stagnated and did not change compared to Q3 2023 and Q4 2022.

In November 2023, the volume of retail trade turnover decreased by 5.4% compared to the same period of the previous year both in raw and calendar adjusted data. The calendar adjusted volume of sales decreased by:

* 0.6% in food and food-like mixed stores
* 3.9% in non-food retail
* 21.4% in fuel retail

The volume of retail trade turnover increased by 0.8% compared to the previous month when seasonally and calendar adjusted.

In January-November 2023, the volume of turnover was 8.7% lower than in the same period of the previous year based on calendar adjusted data.

In the food and food-like mixed retail trade, the volume of turnover decreased by 0.6%. The volume of sales in mixed stores, which account for 77% of food retail, did not change, while it decreased by 2.6% in food, beverage and tobacco specialized stores.

The volume of non-food retail trade turnover decreased by 3.9% in total. The volume of sales increased by:

3.5% in pharmaceutical, medical product and perfume stores

Decreased by:

4.1% in second-hand goods stores
5.1% in book, computer and other consumer goods stores
7.8% in furniture and consumer electronics stores
9.2% in consumer goods mixed stores
9.9% in textile, clothing and footwear stores

The volume of mail order and internet retail, which covers a wide range of goods and accounts for 11% of retail trade turnover, decreased by 0.3%.

The volume of turnover at petrol stations was 21.4% lower than in the same month of the previous year.

Sales of motor vehicles and vehicle parts, which are not included in retail trade data, remained essentially unchanged.

The decline in retail trade turnover clearly shows a significant decrease in disposable income of households, as a result of which VAT revenues showed a 1% decrease in December compared to a 10% increase in January in 2022.

In December 2023, the volume of construction output decreased by 4.3% compared to the same month of the previous year, but increased by 5.1% compared to the previous month.

In December 2023, the volume of construction output lagged behind the previous year by 4.3% based on raw data. Among the main construction groups, the production of building construction decreased by 6.0% and that of other structures by 0.5%. Based on seasonally and workday adjusted indices, construction output was 5.1% higher than in November.

In 2023, construction output was 5.0% lower than in 2022. Producer prices in the construction industry