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KSH: Hungary Tops EU Economic Growth List in Second Quarter

admin 2014.09.03.

Hungary’s economy grew by an annual 3.9% in the second quarter of 2014, announced the Central Statistics Office (KSH) today. Minister of National Economy Mihály Varga said the country’s growth is now on a balanced, healthier track, as Hungary shows the most growth for the second quarter of 2014 in the European Union.

Sectors like industry, construction and agriculture all had great figures, but surprisingly investments were also up by 20%. Varga, commenting on the figures said that “this means we can expect more investments in the future, and with them, more jobs.” With these growth rates the budget deficit could be kept under 3%, added the minister.

Besides industrial sectors, household consumption also grew by 2.4, registering the highest figures in the past eight years. According to Varga, higher wages led to an increase in consumption, helping out SMEs (small and medium companies). GDP growth was the highest in the second quarter for the past eight years, party due to the central bank’s funding plans.

The ministry expects a growth of 3.1% for 2014, while analysts remain doubtful. A recently released report on emerging markets of Europe, London investors predict the prolonging tensions in Ukraine could hinder the previously positive growth outlook countries in the region, including Hungary. (MTI)

photo kormany.hu