In the second quarter, GDP contracted 1.3% over the same period last year, according to revised data released by the Central Statistics Office (KSH) on 7 September. The figure, which came in a notch below the 1.2% flash estimate reported on 14 August, represents the second consecutive drop in output and the worst outturn since the last quarter of 2009. Compared to the preceding quarter, GDP decreased a seasonally adjusted 0.2%, which came in above the 1.0% drop recorded in the Q1 and signifies that the Hungarian economy fell into recession. Domestic demand fell 3.4% (Q1: -3.0% year-on-year), mostly reflecting a further deterioration in total consumption, which stepped down from a 0.5% contraction in the first quarter to a 1.8% decline in the second quarter. While private consumption decreased 1.6% in the second quarter, government consumption swung from a 1.0% expansion to a 2.9% decline. Moreover, fixed investment remained mired in the red, albeit moderating the pace of decline, and stepped up from a 6.6% contraction in the first quarter to a 4.5% drop in the second. A lower pace of inventory building further contributed to the decline. On the external side, exports accelerated a notch from a 1.9% increase in the first quarter to a 2.1% expansion in the second. However, imports followed suit and swung from a 0.3% contraction in the first quarter to a 0.2% increase. As a result, the net contribution from the external sector to overall growth remained positive but deteriorated from 2.2 percentage points in the fourth quarter to 1.8 percentage points in the second. In its latest inflation report from June, the Central Bank projects the economy to contract 0.8% this year and to expand 0.8% in 2013.
Hungarian economy enters recession
September 7, 2012
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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.