Hungary's GDP per capita increased from 13 thousand to 18.5 thousand dollars, which is an average improvement from 30 to 40 percent compared to the more developed countries!
The average salary in Hungary increased from 450 euros to 840 euros, wages did not reach a quarter of the wages of developed countries in 2010, now they exceed a third
We are catching up with Europe, but we have left much of the world well (read on!)
How? Here are some reasons
👉Orban “stole” the recession!
That's how we became frontrunners from army drivers!
👉Currently, 11.1 percent of people in OECD countries live in relative poverty. In Hungary, this proportion fell to a third in 11 years, from 23.4 percent to 8 percent.
👉There will be no tax increase!
Hungarian companies will continue to pay the lowest corporate tax in Europe!
👉The payment of bills does not "hurt" an average Hungarian family today, while in 2010 it hurt!
These are the facts, comrades!
ÉrtékI promised, they did! Fidesz is raising wages while cutting taxes
The left took wages while raising taxes!
👉What Fidesz undertook fulfilled! we have a million new jobs!
👉The reality is that Hungary has one of the lowest taxes on wages!
MagyarHungarian GDP will grow by 7.6 percent this year, making us third in the EU!
It also means that we have worked off the downturn of 2020 and, in fact, our economy has continued to grow!
👉IMF: Hungary will be a regional record holder this year
The Hungarian economy is rolling much faster than expected!
👉 Income taxes have been reduced by 50 percentage points since 2010!
And that's not all! Check out these 6 links too!
One of Hungary's most important goals is to catch up with half as rich in Europe, and we will see how we have succeeded in the last 10 years. Surprisingly, there are not so many countries outside Europe that are more developed than we are.
The goal of catching up
With the change of regime, the goal floated for most of us to catch up with the countries of the continent, which became rich countries after the Second World War, in terms of quality of life, especially labor income, with a similar economic and social system. This process was difficult to start, as it took several years to adapt to the world economy: the former industry, which produced non-marketable products, was downsized, and it took time for investors to produce the most advanced technologies to wait for market economy institutions to emerge.
Thus, catching up did not start until the second half of the 1990s and was still fluctuating, but since about 2014 it has switched to a very high speed, and this has not been significantly disturbed by the effects of the epidemic, as the adverse effects also affected developed countries. sometimes stronger than catching up.
GDP and frameworks
To examine the extent of catching up, we look at two numbers: GDP per capita and net average earnings. The former shows quite well the level of development of the countries as a whole, and the latter specifically the income that the labor force can achieve, and this is particularly important in the European Union (plus Switzerland and the European Economic Area), as anyone can work in any Member State.
The Visegrád region is currently
We take into account the estimated data for 2021 in terms of GDP per capita, as last year's data would be very distorted due to the impact of the epidemic. We look at the data in dollars, after this statistical practice for the time being, and we will compare earnings in euros.
According to current estimates, this year’s growth will be high after last year’s downturn, bringing per capita GDP to just over $ 18,000.
According to the latest IMF estimate for October, the Hungarian GDP figure is $ 18,500. Of the Visegrad countries, Slovakia is $ 21,400 ahead of us, the Czech Republic $ 22,900 ahead of us, while Poland is $ 17,300 behind us.
The data for the group of developed countries that can be set as targets for catching up are between 45 and 50 thousand (France and Belgium 45, Germany 46, Austria a little more than 48 thousand dollars).
There are higher figures, but in many cases the tax haven effect is distorted (Ireland, the Netherlands, Switzerland, Luxembourg).
As can be seen, we are currently at 37-41% of the level of the ideal group of countries, but part of this is due to the relative undervaluation of the forint, ie the difference in price levels. Data on PPPs are used to eliminate this, but it is almost impossible to calculate them precisely: it is extremely difficult to assess, or even compare, the price level and average cost of living in each country.
Plenty of 10 years of catching up
As for the 10-year development: in 2010 the GDP per capita in Hungary was $ 13,000, while in Germany it was $ 42,000, in Austria it was $ 47,000, in Belgium it was $ 44,000 and in France it was $ 40.5,000.
Thus, at that time the Hungarian GDP reached only 27-32 percent of the mentioned group of countries, which has now increased to 37-41 percent, rounded slightly from 30 to 40 percent on average.
Good place in the world
What is really interesting, however, is that while Hungary's GDP grew from $ 13,000 to $ 18.5,000, there are fewer countries in most non-European countries, but there are several countries where there has been a straightforward decline (of course, there is an exchange rate effect).
The point is that Hungary's GDP has grown compared to most of the world's middle-income countries, and the interesting situation is that although we are relatively backward in the European Union, there are not many countries on other continents that have a higher per capita GDP than ours. .
Excluding oil countries, city-states, and small states with populations well below one million, only the U.S., Canada, Australia, New Zealand, Japan, South Korea, Israel, and Taiwan (if considered a separate country, de facto, but China’s own only 8 countries.
This shows that, on average, Europe is by far the richest of the many continents, as we are still lagging behind, but we have already overtaken much of the world. It also indicates that the main driver of our rapid development is the driving force of the richer countries in Europe, so far we have avoided the trap of moderate development, where many Asian and Latin American countries are stuck.
Income catching up
Finally, let’s look at the most perceptible data, the catching-up.
The average domestic salary, excluding public works and taking into account family benefits, is roughly EUR 840 net at the current exchange rate. In the case of the previously examined target group, France, Belgium, Germany and Austria, the amount is between 2300-2600 euros, so the domestic level is 32-36 percent of it, on average a little more than a third.
10 years ago, the average net Hungarian salary was roughly 450 euros, while in France it was around 2,000 euros and in Germany around 2,100 euros. Thus, the Hungarian data is 21.5-22 percent of these, compared to which today's 32-36 percent is a very spectacular improvement. In other words, the level did not reach a quarter then, it now exceeds a third.
It can go on
Of course, this may still seem small in itself, and it is probably this difference, and partly the labor shortage it causes, may be the driving force behind the rapid rise in domestic wages in the coming years, ie further catching up.