Temu’s active customer base reached 1.3 million in May.

The retailer completed 1.6 million Hungarian orders totalling Ft 22.5 billion in the first quarter, amounting to 6.4% of all domestic online spending.

Writing on the Portfolio website, Economy Ministry economists Gergely Suppan and Tamás Kisfaludy said retail trade statistics only show the domestic figures, whereas consumers spend an increasing and significant amount abroad online, typically in Chinese webshops, for American streaming or online accommodation.

Hungarians spent Ft 297 billion on foreign travel in the first three months of 2024, an increase of Ft 84 billion, or nearly 40% year-on-year.

The economists say this explains why Hungarians are not spending their money in domestic shops, despite the growth in real wages.

They prefer to go on vacations abroad and order from foreign webshops, or save money and buy homes after interest rates have dropped, the study found.

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