Shops Staying Open on Sundays Can Result Hungarian GDP Rise


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Shops again had the option of staying open on Sunday after President János Áder on 15 April signed into law the repeal of restrictions on Sunday shopping, and it was promulgated in the official gazette called Magyar Közlöny. It is also very good news that Hungary’s quit on Sunday shopping ban can lift the GDP.

Shops are back as they were

In response to a government proposal, Parliament repealed legislation on Sunday as a day of rest. The Cabinet has said that it recommended this course of action because over the past year the issue has proved to be divisive.

The proposal would completely restore the previous system that was abolished on 14 March 2015. The passing of the new law means those working on Sundays are entitled to a 50% wage supplement, whereas the supplement was 100% since the shopping ban was implemented last March. Before 15 March 2015, employees in the retail sector in Hungary were entitled to a 50% wage supplement on Sundays and a 100% wage supplement on holidays, Easter and Pentecost Sunday.

Limitations

On 24 December retail establishments can be open only until 2 pm, excluding restaurants catering businesses, accommodation establishment, flower, and sweetshops, petrol stations and shops in the area of public bus and railway stations, airports, petrol stations. Commercial authorities either by ex officio or by any notifications can limit shops opening hours by night (from 10 pm to 6 am) to ensure residents rights to have healthy conditions and to relax. The commercial authority can order night shutdown until the end of the violation.

Hungary’s GDP may grow by 2. 5%

Hungary’s gross domestic product may increase as a result of a recent government decision to rescind a law keeping most retail stores closed on Sundays, a Budapest-based analyst at ING told business daily Világgazdaság. András Balatoni said although the impact of the measure will not be huge but it could be large enough for Hungary’s GDP to grow by 2.5% instead of the expected 2.3%.

ING Bank’s chief analyst also added that the already recovering retail sales could be further bolstered, albeit only temporarily, by the government’s decision to abolish the Sunday shopping ban, merely by adding one more day to purchase goods. The measure could also have a favourable effect on employment. When the government created legislation banning - with a few exceptions - stores from opening on Sundays, the number of employees in the retail sector decreased. Now it can rise back to where it was before the no-work Sunday law came into effect. Additionally, salaries could rise too.

(Sources: http://www.portfolio.hu/en/economy/hungary_calling_quits_on_sunday_shopping_ban_seen_lifting_gdp.31163.html, http://www.atv.hu/belfold/20160415-kihirdettek-a-vasarnapi-nyitva-tartast-lehetove-tevo-torvenyt)

 

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