In the fourth quarter, GDP expanded 2.7% over the same period of the previous year according to more detailed data released by the Hungarian Central Statistics Office (KSH) on 5 March. The reading marked the fastest growth rate in seven years. In addition, the figure was in line with the preliminary estimate and overshot the 1.8% expansion recorded in the third quarter. In the full year 2013, the economy expanded 1.1%, which contrasted the 1.7% contraction recorded in 2012. Q4's expansion was mainly the result of an improvement in both domestic and external demand. Private consumption expanded 0.5% over the same period of the previous year, which contrasted the 0.1% fall recorded in Q3. In addition, government consumption improved from a 1.6% rise in Q3 to a 5.7% increase in Q4. Fixed investment rose 10.4%, which was up from the 8.3% increase observed in Q3. On the external side of the economy, exports increased 8.8% over the same quarter last year (Q3: +6.4% year-on-year), while imports rose 7.6% (Q3: +5.8% yoy). As a result, the external sector's net contribution to overall economic growth rose from 0.8 percentage points in Q3 to 1.2 percentage points in Q4. On a quarter-on-quarter basis, GDP expanded a seasonally-adjusted 0.5%, which undershot both the previously-estimated 0.6% rise and the 0.8% increase observed in the previous quarter. The Central Bank expects the economy to expand 2.1% in 2014 and 2.4% in 2015. FocusEconomics Consensus Forecast panelists forecast a 1.8% expansion in 2014, which is unchanged from last month's projection. For 2015, the panel expects growth to accelerate to 1.9%.
GDP expands at fastest pace in seven years in Q4, rebounds in 2013
March 5, 2014
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Hungary GDP Chart
Note: Year-on-year changes of working-day adjusted GDP in %.
Source: Hungarian Central Statistics Office and FocusEconomics Consensus Forecast.
Hungary Economic News
October 11, 2016
In September, consumer prices rose 0.2% from the previous month, contrasting August’s 0.4% decrease.
October 7, 2016
According to preliminary data released by the Statistical Institute (KSH) on 7 October, industrial output in August rose a working-day adjusted 3.5% from the same month last year, rebounding from July’s 0.1% decrease and marking a four-month high. On a monthly basis, industrial production increased a seasonally- and working-day adjusted 1.6% in August, which followed July’s 0.3% decrease.
September 26, 2016
The GKI economic sentiment indicator advanced slightly from August’s minus 3.9 points, which was the lowest reading in over two years, to the still-low level of minus 3.6 points in September.
Hungary: Central Bank leaves base rate at 0.90%, continues easing monetary conditions by capping main deposit facility
September 20, 2016
The Central Bank of Hungary (NBH) held all rates constant at its 20 September monetary policy meeting, but continued easing monetary policy conditions by using unconventional monetary policy instruments.
September 9, 2016
In August, consumer prices fell 0.4% over the previous month, coming in below July’s softer 0.2% decrease.