Hungarian Households, the 2nd Poorest in the EU

According to the Statistical Office of the European Union (Eurostat), Hungary is the second poorest country in the European Union. Hungarian household consumption is only 70% of the EU average – same as in Slovakia. Only Bulgaria is worse off.

Eurostat notes that actual individual consumption (AIC) is a measure of material welfare of households. In 2021, AIC per capita expressed in purchasing power standards (PPS) varied from 63% to 146% of the EU average across the 27 Member States.

In 2021, nine Member States recorded AIC per capita above the EU average. Luxembourg (46%) was the only Member State that recorded AIC per capita 25% or more above the EU average. In Denmark, Germany, Netherlands, Belgium, Austria, Sweden, Finland and France, the levels were 10% or more above the EU average.

In thirteen Member States, AIC per capita was between the EU average and 25% below. In this category, there were significant differences across the Member States: in Italy, Lithuania, Cyprus and Ireland, the levels were 10% or less below the EU average, while Slovenia, Spain, the Czech Republic, Poland, Portugal, Malta and Romania were between 11% and 20% below. Estonia and Greece were 21% and 23% below the EU average, respectively.

Five Member States recorded AIC per capita 25% or more below the EU average. Croatia, Latvia, Hungary and Slovakia were between 27% and 30% below, while Bulgaria recorded AIC per capita 37% below the EU average.

According to press reports, in 2010, when the current PM, Viktor Orbán came to power, Hungary was three places higher on this consumption list. In 11 years, consumption has increased by 36%, but this is still enough to rank last in Central and Eastern Europe.