In the second quarter, GDP grew 1.5% over the same period last year according to revised figures released on 8 September. The figure was unchanged from the flash estimate published on 9 June and represented the slowest pace of expansion in a year, well below the 2.5% increase observed in the first quarter. The slowdown was the result of a weaker domestic sector. In particular, fixed investment contracted 8.1%, which came in well below the 1.6% decline observed in the previous quarter. On a positive note, total consumption improved from a 0.2% contraction in the first quarter to a 0.1% increase, which was the result of stronger private consumption (Q1: -0.8% year-on-year; Q2: +0.1% yoy) being somewhat offset by a moderation in government spending (Q1: +3.8% yoy; Q2: +0.1% yoy). Exports slowed from a 14.4% expansion in the first quarter to an 8.8% increase, while imports decelerated more markedly, also from a 14.4% increase in the previous quarter to a 6.1% expansion. As a result, the net contribution from the external sector to overall growth improved from 1.2 percentage points in the first quarter to 2.8 percentage points in the second quarter. At the sector level, growth continued to be supported by the industrial sector, which slowed from a 10.6% expansion in the first quarter to a 5.6% increase. Agriculture picked up from a 2.9% increase in the first quarter to a robust 24.0% expansion, while services deteriorated by contracting 0.3% (Q1: +0.2% yoy). A quarter-on-quarter analysis corroborates the deceleration suggested by the annual figures as economic activity was flat over the previous quarter in seasonally and calendar-adjusted terms (Q1: +0.3% quarter-on-quarter) In its latest inflation report from June, the Central Bank projects the economy to grow 2.6% in 2011 and 2.7% in 2012.
Second quarter slowdown confirmed
September 8, 2011
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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.