Hungary: Economy expands at fastest pace in two years and half
November 14, 2013
In the third quarter, GDP expanded 1.7% over the same period last year, according to preliminary data released by the Hungarian Central Statistics Office (KSH) on 14 November. The figure exceeded both market expectations of a 0.8% expansion and the 0.5% expansion recorded in the second quarter. This represents the highest growth rate since Q1 2011. According to KSH, the increase came on the back of an improvement in agriculture, manufacturing and construction.
Compared to the preceding quarter, GDP expanded a seasonally-adjusted 0.8%, which marked an improvement over the 0.4% drop recorded in Q2. Detailed data will be published on 5 December.
The Central Bank expects the economy to grow 0.7% this year. For 2014, the Bank sees economic growth accelerating to 2.1%. FocusEconomics panelists expect the economy to expand 0.6% this year, which is up 0.1 percentage points from last month's projection. For 2014, the panel expects the economy to increase 1.7%, which is also up 0.1 percentage points from last month's estimate.
Author: Dirina Mançellari, Senior Economist