Hungary’s GDP Growth Accelerates To 5% In Q3
- 15 Nov 2019 8:23 AM
- Hungary Matters
Hungary’s GDP rose by an annual 5% in the third quarter, the Central Statistical Office (KSH) said in a first reading of data.
Growth accelerated from 4.9% in Q2. KSH said the industrial and construction sectors as well as market-based services contributed the most to growth in Q3. Adjusted for seasonal and calendar year effects, Q3 GDP growth was 4.8%.
Finance Minister Mihály Varga noted that Hungary’s Q3 GDP growth was well over the 1.4% average of European Union member states. He said growth was supported by government measures to boost employment, improve competitiveness, support home construction and better utilise EU funding, as well as by investment incentives.
Varga said the government is following closely economic and geopolitical developments in Europe and the rest of the world and has already initiated measures to shield the Hungarian economy from their impact. More steps to protect the economy are expected to be taken next spring, he added.
ING Bank chief analyst Péter Virovácz said that, in spite of an expected slowdown in the fourth quarter, Hungary’s full-year GDP growth could remain very close to 5%.
Takarékbank senior analyst Gergely Suppan put fullyear GDP growth at 4.9%. Next year, growth could slow to 3.7%, he said, but noted that domestic demand presents upside risk for that projection.
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