Hungary: Hungarian economy expands in Q1 at slowest pace in three years
May 13, 2016
Hungary’s economy lost momentum in the first quarter, with GDP recording the slowest annual expansion in three years. GDP grew 0.9% in Q1 over the same period last year, according to preliminary data released by the Central Statistics Office (KSH) on 13 May. The print came in significantly below both the 3.2% expansion recorded in Q4 and market expectations of a 2.3% rise. According to KSH, while an increase in market services supported the mild expansion, the notable deceleration mainly came on the back of weaker readings for construction and industry.
On a quarter-on-quarter basis, GDP contracted a seasonally-adjusted 0.8% in Q1, which contrasted Q4’s 0.6% rise and marked the first drop in over three years. More detailed data will be released on 7 June.