Once seen as one of Europe’s rising stars, Hungary has officially become the poorest country in the European Union in terms of household welfare, Kyiv Insider reported, citing the latest Eurostat data. The numbers show that Hungarian households now consume just 72% of the EU average, which is the lowest among all 27 member states, according to the report.Hungary’s Fall to the Bottom of EU Living Standards Hungary’s figure is in contrast to Luxembourg, as it now leads the European Union in the Actual Individual Consumption (AIC) per capita with 141%, followed by the Netherlands at 120% and Germany at 118%, reported Kyiv Insider. Even Poland has outpaced Hungary in real living standards by about 13 percentage points, and its AIC is at 85% of the EU average, according to the report.

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Luxembourg Leads, Hungary Lags BehindWhile Hungary’s GDP is currently at about 77% of the EU average, which is above several low-income EU nations, its households continue to remain poorer in terms of consumption, as per a Kyiv Insider report. This gap reflects that Hungary’s economic output is not transforming into real benefits for Hungarian families, according to the report.Economic Output Isn’t Reaching FamiliesThe poor economic conditions come under the Prime Minister of Hungary, Viktor Orbán, who is an increasingly authoritarian and pro‑Russian Fidesz regime, which has been systematically pillaged, according to Kyiv Insider report.

Under Orbán’s leadership, “the state-owned industries have been hollowed out, public subsidies redirected to political allies, and EU funds commandeered by power networks close to the government,” as reported by Kyiv Insider. Along with this, ordinary Hungarians are facing other issues like low real wages, high inflation, brain drain, and a hollowed middle class, according to the report.FAQsWhat does it mean that Hungary ranks last in AIC?
It means Hungarian families have the least access to goods, services, and public resources like healthcare compared to others in the EU.How is this different from GDP?
GDP shows how much a country produces, but AIC shows how much people actually benefit. Hungary produces more than some countries, but its people are getting less.