Gross wages rose faster than expected in July, analysts told MTI on Tuesday. They expect net wages to grow by an average 4.5-5.5pc in the full year.
Gross wage growth in Hungary accelerated to 7.1pc year-on-year in July after a slowdown to 4.1pc in June, data published by the Central Statistics Office (KSH) on Tuesday show. Net wages rose 4.4pc yr/yr during the period. Business sector gross wages rose 9.2pc and business sector regular wages rose 8.0pc yr/yr in July.
Zsolt Kondrat of MKB said the 7.1pc growth is gross wages was well above the 4pc consensus of analysts as they likely did not take into account a HUF 13,800 lump-sum compensation paid to employees in the health care sector.
Gross wages will probably increase 5.5pc in 2012, while net wage growth could slow from July, Mr Kondrat said. The analyst added that real wages fell 3.5pc in January-July, which could negatively affect consumption and GDP.
Gergely Suppan of Takarekbank said that real wages fell on the whole by 1.3pc in July, this reflected the sharp drop for those employed in public work schemes. Excluding them, real wages rose both in the business sector and the public sector as the nominal net wage rises exceeded 6pc.
Mr Suppan said he expects as before an annual 4.5pc average net wage growth for 2012, because of the one-off payments in July.