• Home
• Channel: Finance
• Economy Expands 6.5% in Hungary During Q2

Economy Expands 6.5% in Hungary During Q2

• 18 Aug 2022 11:09 AM
• Hungary Matters

Hungary's GDP grew by an annual 6.5% in the second quarter, the Central Statistical Office (KSH) said in a first reading of data released on Wednesday.

KSH said all branches of the national economy contributed to headline growth, with the exception of the farm sector.

Growth was supported especially by industry, particularly food and drink production and electrical equipment manufacturing, and by market services, notably commercial accommodations and catering, and logistics services, it added.

Quarterly growth slowed from 8.2% in Q1, KSH noted. Adjusted for seasonal and calendar year effects, Q2 GDP growth was level with the unadjusted figure. In a quarter-on-quarter comparison, adjusted GDP rose by 1.1%. First-half GDP growth climbed by an annual 7.3%.

Commenting on the data, Finance Minister Mihály Varga said all branches of the economy contributed to Q2 growth, with the exception of agriculture, which was hit by the drought. Industry, trade, tourism, the financial sector and the ICT sector, too, performed well, he said on Facebook.

Varga said the foundation for the performance of the Hungarian economy was work, noting that the number of employed exceeds 4.7 million, while the jobless rate is at a record low of near 3%.

Analysts: Hungary Q2 GDP Growth Exceeds Expectations

Commenting on the Central Statistical Office’s second-quarter growth report, Gergely Suppan, chief analyst at Magyar Bankholding, said Q2 GDP growth beat expectations and was among the highest in the European Union.

Magyar Bankholding could bump up its forecast for 5.7% full-year growth, he added, while acknowledging an expected slowdown in the coming quarters because of base effects and the impact of the war in Ukraine.

János Nagy, Erste Bank’s macro analyst, said monthly industrial output data already showed the resilience of Hungarian manufacturers as supply chain tensions continued, while higher wages and fiscal transfers boosted domestic consumption, supporting the performance of services.

Erste puts full-year GDP growth at 5.5%, he added.

Ful report available here.

• How does this content make you feel?
• I love it
• I like it
• I dislike it

• Economy GDP

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this newsletter published on week days covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI.

Explore More Reports

Consumer Price Index Inches Up in Hungary - Basic Food Prices Up Steeply Again

• 13 Nov 2024 11:36 AM

Hungary's annualised consumer price index reached 3.2pc in October, inching up from 3.0pc in the previous month, data released by the Central Statistics Office (KSH) on Tuesday show.



High Savings Rate of Hungarian Households Well Over Average for Region

• 13 Nov 2024 7:18 AM

Hungarian households' high savings rate and net financial assets, well over the average for the region, are a "growth reserve" for the national economy, if they can be channeled to corporate financing, Barnabas Virag, a deputy governor at the National Bank of Hungary (NBH), said at a conference organised by the Budapest Stock Exchange.



GDP Falls in Hungary - Reasons for Weak Economic Performance Explained

• 1 Nov 2024 8:15 AM

Hungary's GDP contracted 0.7pc year-on-year in the third quarter, adjusted for seasonal and calendar year effects, a first reading of data released by the Central Statistics Office (KSH) on Wednesday shows.



Updated: NBH Sees Inflation Slowing Further in September in Hungary

• 27 Sep 2024 6:00 AM

August's 3.4pc CPI was in line with the National Bank of Hungary's expectations, and the central bank sees inflation falling to 3.1pc in September, Andras Balatoni, an NBH director said.