GDP rose 1.6pc when adjusted for seasonal and calendar year effects.

Growth was driven mainly by services, especially professional, scientific, technical and administrative activities, KSH said. Industry also contributed to growth, while the farm sector weighed, it added.

In a quarter-on-quarter comparison, seasonally- and calendar year-adjusted GDP edged up 0.4pc.

Hungary's first-half GDP growth climbed 1.7pc year-on-year.

KSH will publish a detailed reading of the data on September 1.

ING Bank chief economist Peter Virovacz said the fresh data were a "bit disappointing", with quarter-on-quarter growth "well under" the market consensus.

ING Bank has raised its forecast for full-year growth from 1.5pc to 1.9pc as improving confidence augurs a pickup in household consumption and corporate investment.

Erste Bank analyst Janos Nagy noted that the economy had expanded for the fifth quarter in a row after three years of stagnation.

Erste is standing by its forecast for full-year growth of 1.7pc, he added, though acknowledging the downside risks of a protracted conflict in the Middle East, the drought and government spending cuts.

Click here to read the full report

Photo: Pixabay

Source: MTI – Hungary’s national news agency since 1881.

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