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Never Before Seen Growth in Hungarian Economy: GDP Up Almost 18% in Q2

MTI-Hungary Today 2021.08.17.

Hungary’s second-quarter GDP grew by an annual 17.9 percent after a double-digit decline in the base period, a first reading of data released by the Central Statistical Office (KSH) on Tuesday shows.

Adjusted for seasonal and calendar year effects, GDP climbed by 17.7 percent.

A year ago, Hungary’s GDP fell by an annual 13.6% in the second quarter, impacted by the coronavirus crisis.

In a quarter-on-quarter comparison, GDP rose by a seasonally- and calendar year-adjusted 2.7 percent.

KSH noted that unadjusted GDP was 2.2 percent higher than in Q2 2019, before the start of the pandemic.

First-half GDP was up by 7.6 percent year on year.

Finance Minister: Hungary recovery among fastest in EU

Finance Minister Mihály Varga said in a message posted on Facebook that the fresh data show the economic recovery in Hungary is moving forward at a pace that is “among the fastest in the European Union”.

He said the structure of growth is “healthy” and extends to “a broad range of economic sectors”. Pandemic-related government measures to aid the recovery could contribute 8.4 percentage points to economic growth this year, he said.

“Now the goal is to preserve the [growth] advantage the Hungarian economy enjoys compared to the European Union. That’s why we’re continuing an economic policy based on tax cuts, workplace creation, investment incentives and family support,” he added.

Featured photo illustration by László Róka/MTVA