Hungary: Growth remains strong in Q3
The Hungarian economy continued to expand robustly in the third quarter. According to preliminary data released by the Hungarian Central Statistics Office (KSH) on 14 November, economic growth in Q3 came in at 4.8% in year-on-year terms. This was marginally below the second quarter’s 4.9% year-on-year expansion but the fifth consecutive quarter of annual growth above 4.0% nonetheless.
Household spending likely remained buoyant in the quarter. Retail sales expanded at a solid pace throughout Q3, underpinned by tight labor market conditions and robust wage gains. Upbeat business sentiment and a strong construction sector also suggests fixed investment also expanded solidly, on the back of growing EU funds. Additionally, industrial production growth picked up some pace from the previous quarter, although the scope of the acceleration was limited by a marked cooling in the industrial sector in the EU, especially in Germany—the country’s main trading partner.
On a quarter-on-quarter, seasonally- and calendar-adjusted basis, GDP growth inched up from 1.1% in Q2 to 1.2% in Q3.
More detailed data will be released on 5 December.