On the production side every major sector – albeit slightly – but declined. In contrast with prior periods, the industrial sector which mainly produces for foreign markets has also declined slightly, and agriculture could achieve no expansion either after the success of last year. It has to be noted though that the gross added value created by the national economic sector of information and communication increased by 3 percent, however the construction sector shows no signs of recovery.

On the consumption side tendencies have been similar: net exports could contribute to growth, whereas other sectors typically registered near-stagnation minimal decline.

It has been obvious that Hungary could not stay immune to negative trends which have been prevailing on external markets. It is a significant factor with regard to the future however that large scale production at the Mercedes plant in the next couple of quarters will have a positive influence on growth trends via industrial data.

Good news from the labour market is also expected to improve prospects and the household sector which has been gaining independence from the burden of exchange rate risks imposed by foreign currency denominated loans can also provide some pleasant surprises via consumption.

Source: Ministry for National Economy - kormany.hu