In the third quarter, GDP increased 1.4% over the same period last year according to data published by the Central Statistics Office (KSH) on 9 December. The reading was unrevised from the flash estimate released on 15 November and came in a notch below the 1.5% expansion observed in the second quarter. Gross fixed investment contracted for the eleventh consecutive quarter and dropped 8.6% (Q2: -7.6% year-on-year). Moreover, total consumption contracted 0.2% over the same period last year, which came on top of a 0.3% decline in the previous quarter. Falling government spending was the main drag on consumption (Q2: -0.8% yoy; Q3: -1.4% yoy), whereas private consumption improved a notch to a flat reading (Q2: -0.2% yoy). Exports continued to underpin the recovery by growing 7.6% (Q2: +8.8% yoy), amid sustained third quarter growth in Western Europe and helped by the recent depreciation of the forint. Imports, on the other hand, moderated more markedly from a 5.9% expansion in the second quarter to a 3.3% increase in the third quarter. As a result, the external sector's net contribution to overall growth improved further to plus 3.9 percentage points. At the sector level, growth was underpinned by agriculture and industry. Output in the agricultural sector soared 28.5% (Q2: +26.6% yoy), while that of industry increased 3.5% (Q2: +6.3% yoy). In contrast, the services sector contracted for the twelfth straight quarter, dropping 0.9% (Q2: -0.7% yoy). Compared to the previous quarter, GDP increased a seasonally adjusted 0.5%, which came in above the 0.2% increase recorded in the second quarter. The Central Bank projects the economy to grow 1.6% this year and 1.5% next year.
Slower growth confirmed in the third quarter
December 9, 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.