Growing poverty in the shadow of high inflation and weak economy lurks in the Hungarian citizens

According to the international group Tasnim news agency, Hungarians are again at risk of becoming poor. Because inflation is high in this country and the economy is weak.

Even rich Hungarians are suddenly forced to save like never before in their lives. For example, a woman from Budapest, who actually has a high pension, told SRF Switzerland that she didn’t even have to look at the money during communism, but she does today.

According to him, people collect discount coupons and go from one store to another where it is the cheapest. They plan their meals based on special offers, avoid expensive fruits and new clothes. A statistic is also noteworthy: many elderly people in this country are working again because their pension is not enough. Inflation in Hungary is higher than anywhere else in the EU. In addition, the economy of this country is in a technical recession, that is, instead of growing for two consecutive quarters (compared to the same period last year), it contracted.

Behind this unfavorable structure of the Hungarian economy, this fact It is hidden that this country has not (yet) succeeded in creating an economy with high added value in its country. The Hungarian economy is still largely a supplier of foreign companies, especially the German automotive industry. If things don’t go well there, Hungary is in trouble.

The Hungarian government has, of course, capped the prices of some staple foods, but that doesn’t seem to have had the desired effect of improving the situation. The government doesn’t have a lot of room for maneuver, and in fact part of the problem is that the government spent a lot of money before last year’s election, had to raise taxes, and had a hard time responding to inflation in terms of fiscal policy, which fueled inflation. hit The government led by Prime Minister Viktor Orbán says that EU sanctions against Russia are to blame for this misfortune.

Here the question is whether the situation in Hungary has political consequences for the government? Not really, Hungarian Prime Minister Viktor Orbán has rarely lost his popularity. This is because older Hungarians in particular remember that things were much worse under the previous government: when the socialists ruled, Hungary was on the brink of economic collapse and international donors had to step in. The Socialist Party still leads Hungary’s opposition today, and almost no one wants it back. Orban’s anti-European propaganda is also working, and many Hungarians actually believe that the EU is to blame for their misery.

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