Weekly newsletter

KSH: Hungarian GDP at Surprise Heights

admin 2014.08.15.

The gross domestic production of Hungary grew by 3.9% in the second quarter of the year, revealed the Central Statistics Office (Központi Statitsztikai Hivatal, KSH) on Thursday. The GDP growth has not been at such heights in the last eight years as both foreign and Hungarian analysts already predict an above 3% growth for the complete year.

According to KSH, the figures exceed expectations, as most analysts predicted figures closer to 3.5%. The GDP growth numbers are due to the good performances of the industrial and construction sectors. The Hungarian economy managed to emerge from recession in the first quarter of 2013, after the four consecutive negative quarters of 2012..

Pál Pozsonyi, department head at KSH said at the presentation of these figures that the last time the country saw such a growth was in the first quarter of 2006. The recent figures of industrial and construction growth support this latest report on the Hungarian GDP, and according to preliminary data, agricultural production is also on the rise despite a slightly worse crop harvest.

According to Pozonyi, almost all industrial sectors showed growth. In the construction sector, the main driving force was the number of grand infrastructural investments, but manufacturing is also doing very well. As for services, apart from the financial sector, all segments show growth.

MTI, photo public domain