Hungary Retail Figures Q1 2024

Following a temporary uptick for the Christmas season, retail sales finally showed a strong recovery in March, up 2.0% m/m and 4.2% y/y. As inflation eased remarkably, sales volumes have probably bottomed out and is in the recovery phase as real income is growing on the back of still strong salary increases. Year to date retail sales volume (Jan-Mar 2024) grew by 2.2% y/y. Perfumery showed the largest increase by 9.7%, while fuel by 3.9%, food by 3.1% and online trade was also up by 2.7% y/y. The largest decline was for books and newspapers, down by -9.4%, while textiles and clothing fell by 4.4%- compared to the same period of last year. Even with this correction in general sales volume, consumption is at 2021 levels only so there is room for further catch-up. Looking ahead, we expect domestic spending to remain a driver of economic growth in 2024 and retail sales to mark positive growth – helped by the weak basis last year.