lh x cw market report A4_23.03.02 v34 interactive72

RETAIL MARKET TRENDS

Retail macro indicators - retail sales will continue to grow With a metro population of more than 3.3 million inhabitants, which represents over 30% of the country’s population, Budapest is by far the most dominant capital of the CEE region. In Hungary, only six other cities can be considered as metropolises with a population of over 100,000 - the largest (Debrecen) with 200,000. Budapest remains the country’s economic centre, with a per capita household disposable income of €8,620. The largest spending categories remain similar to other Central and Eastern European markets, with food and beverages (26%), housing and maintenance (19%) and transport (11%) dominating private consumption. Real wage growth accelerated in 2021 and became higher than in the pre-pandemic period, but purchasing power has recently started to decline, mainly due to high inflation and a depreciating currency. Average real wages at the end of 2022 were lower than before the start of the pandemic.

Retail

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