Hungary’s first-quarter GDP grew by an annual 4.4 percent, rising at the same rate as in the previous quarter, the Central Statistical Office (KSH) confirmed in a second reading of data released on Tuesday.
Adjusted for seasonal and calendar year effects, GDP was up 4.7 percent. On the production side, services expanded by 4.9 percent, with growth in commerce, commercial accommodations and catering reaching 8.2 percent. Quarter-on-quarter, GDP rose by an adjusted 1.2 percent.
Ágnes Hornung, state secretary for finance, told public television after the data release that, based on first-quarter growth data, growth of 4.3 percent could be attained in 2018 as household consumption still had a lot of potential. Consumption has not yet caught up with rising wage levels, even if it has expanded appreciably since the end of last year. Neither is the inclination of households to borrow excessive, she added.
Hungary’s GDP growth from 2006 to 2018 Q1. Graph: KSH via MTI.
Hornung said Hungary’s economic growth was balanced and well above the 2.4 percent growth rate of the EU, and all sectors performed well in the first quarter. Noting retail and construction, she said government measures and wage agreements had contributed to the results.
featured image via napi.hu