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Hungary’s GDP Climbs 4.9 Percent in Second Quarter

MTI-Hungary Today 2019.08.30.

Hungary’s second-quarter GDP rose by 4.9 percent year-on-year, the Central Statistical Office (KSH) confirmed in a second reading of data released Friday.

On the production side, value added in the industrial sector rose by 3.8 percent during the period. Within the sector, manufacturing expanded by 3.1 percent. Growth in the construction sector reached 27.9 percent. The farm sector contracted by 1.1 percent.

The service sector expanded by 4.2 percent, as the retail and wholesale trade, commercial accommodations and catering segment grew by 7.5 percent and the infocommunications segment grew by 5.9 percent. Professional, scientific, technical and administrative activities increased by 6.5 percent.

Hungary’s GDP up 4.9 percent in Second Quarter

KSH said services contributed 2.2 percentage points to headline growth, while the construction sector added 1.2 percentage point and the industrial sector 0.9 percentage point.

On the expenditure side, household final consumption increased by 4.5 percent. Gross fixed capital formation jumped 16.4 percent. Export volume rose by 2.7 percent and import volume was up by 4.3 percent.

K+H Bank chief analyst David Nemeth augured full-year growth of 4.3 percent, saying that the slowdown on global markets does not bode well for Hungary’s industrial sector.

ING Bank senior analyst Peter Virovacz put growth for the full year at 4.7 percent, slowing as unfavourable external conditions catch up with Hungary.

featured photo: Minister of Finance Mihály Varga. (photo: Csaba Bús/MTI)