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Exceptional Domestic Economic Growth in International Comparison

MTI-Hungary Today 2024.05.02.

Based on data from the Hungarian Central Statistical Office (KSH), the economy rebounded in the first quarter of 2024, with GDP growing by one percent on an annual basis and by 0.8 percent compared to the previous quarter.

Gergely Suppan, chief economist at the Ministry for National Economy, said in a statement that based on available international data, Hungarian growth is outstanding in international comparison and clearly belongs to the forefront.

On a quarterly basis, Hungarian growth is currently the second highest in the EU, ahead of countries such as Spain, Portugal, the Czech Republic, Belgium, France, Germany, and Austria,

the chief economist noted.

On an annual basis, the country’s growth is also in a leading position, he pointed out, with the third highest annual growth rate among EU countries, ahead of Portugal, Belgium, France, Latvia, Italy, the Czech Republic, Germany, and Austria.

Gergely Suppan added that the EU expanded by 0.3 percent on a quarterly basis, while on an annual basis it grew by 0.5 percent. In other words,

the Hungarian economy outperformed the EU by more than 2.5 times on a quarterly basis and by almost 3.5 times on an annual basis.

This means that the economic catching-up process can continue and even accelerate, he said. The government’s aim is to restart growth at 2.5 percent this year and to shift up a gear next year to 4.1 percent. The economic results published on Tuesday provide a good basis for this, reads the statement.

Reporting on the latest data on M1 news channel on Tuesday afternoon, Suppan said that the first quarter GDP data surprised several analysts. He said the figures show that the recession in Hungary is clearly over. “Tourism and hospitality have certainly contributed to the economy’s performance, and the turnaround in retail trade was already visible at the beginning of the year, as well as the recovery in lending, thanks to state support and the reduction in credit,” he noted.

The economist highlighted that

the signs of growth were visible last year and now the aim should be to push growth above four percent next year.

“Retail sales are still subdued today, but high employment and strong real wage growth should quickly ease consumer caution and boost consumption in the coming months,” he stressed.

IMF Slightly More Pessimistic about Economic Growth than the Government
IMF Slightly More Pessimistic about Economic Growth than the Government

The IMF's overall outlook for the global economy this year has improved only marginally since its previous forecast.Continue reading

Via MTI, Featured image: Facebook/Audi Hungaria Győr

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