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Hungary Records Largest Wage Increase in the Last Decade

Hungary Today 2024.03.14.

A recent study shows that Hungary has seen the biggest wage increase in the last ten years, reports Világgazdaság. In their research, the Utility Bidder team analyzed the countries with the smallest and largest average wage increases between 2012 and 2022, and compared how inflation rates have evolved.

The research shows that wages in Hungary have risen by 100.7 percent from HUF 5,287,747 (EUR 13,346) to HUF 10,614,632 (EUR 26,790) over the past 10 years, more than in any other OECD country.

This is important because it has put much more purchasing power in Hungarian pockets, raising living standards and stimulating consumer spending, which could lead to further economic growth.

In Latvia, which is second on the list, average wages have risen by 87.6 percent over the past 10 years, by more than EUR 15,000, to EUR 32,467 in 2022. Although one of the poorest member states of the OECD, the Latvian economy has grown significantly over the past decade and has become an important part of the European economy.

Over the 10 years up to 2022, average wages in Lithuania have grown at the third highest rate, at 82.4 percent. This represents an increase of nearly EUR 19,000, taking the average wage to EUR 41,829 in 2022. Lithuania has the largest economy of the Baltic states, and like its neighbor Latvia, has benefited from EU accession over the past decade, opening up a wealth of new trade and business opportunities.

Wages in the U.S. have lagged behind inflation the most over the past 10 years, according to research. Prices rose by almost a third between 2012 and 2022, while average wages grew by just 14.04 percent, the research finds.

The study also found that Mexico had the highest inflation at 56.9 percent, followed by Hungary (50.2 percent) and Lithuania (48.7 percent).

The research site writes that “Hungary has the next-highest CPI (Consumer Price Index) increase at 50.2 percent over the past 10 years, the highest increase in Europe. Historically, Hungary has been known for its affordability and very low relative prices, making it a popular destination for travelers looking to make the most of their travel budget.” In addition, the study also found that people in Hungary can enjoy the second-best wage increase compared to inflation. Despite prices rising by as much as 50.5 percent from 2012 to 2022, the average wage in Hungary effectively doubled with an increase of 100.7 percent, meaning people in the country are better off financially despite considerable inflation.

The top 10 countries with the highest wage increase between 2012-2022:

  1.  Hungary
  2. Latvia
  3. Lithuania
  4. Poland
  5. Norway
  6. Estonia
  7. Japan
  8. Sweden
  9. Iceland
  10. Australia
Statistical Office Reports Huge Growth in Real Wages
Statistical Office Reports Huge Growth in Real Wages

In 2023, average gross earnings stood at HUF 571,200.Continue reading

Via Világgazdaság; Featured image via Pixabay

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