Consumption in Hungary
Hungary - Consumption
Economy grows at quickest pace on record in Q2 on low base effect
Economic growth bounced back in the second quarter, with GDP increasing 17.9% on an annual basis (Q1: -2.1% year-on-year).
The upturn reflected improvements in private consumption, fixed investment and exports. Household spending increased 9.9% in the second quarter, which contrasted the Q1’s 3.7% contraction. Similarly, fixed investment bounced back, growing 8.3% in Q2 and swinging from the 0.1% contraction logged in the previous quarter. Meanwhile, government consumption dropped 0.5% (Q1: +10.4% yoy).
Exports of goods and services surged 33.0% on an annual basis in the second quarter, which was above the first quarter's 3.3% expansion. In addition, growth in imports of goods and services sped up to 23.4% in Q2 (Q1: +1.1% yoy).
On a seasonally-adjusted quarter-on-quarter basis, economic growth accelerated to 2.7% in Q2, following the previous quarter's 2.0% increase.
Commenting on the release, Peter Virovacz, senior Hungary economist at ING, stated:
“The growth profile of the first half of 2021 tells a story of a resilient and surprisingly flexible economy. However, we need to keep in mind that reopening was just a one-time booster and, while aggregate demand will increase further, its impact will be much more muted than in the second quarter.”
FocusEconomics analysts see GDP growing 4.5% in 2021, which is down 0.2 percentage points from last month’s forecast, and 4.0% in 2022.
Hungary - Consumption Data
|Consumption (annual variation in %)||3.8||4.9||4.4||4.9||5.0|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||2.08||0.0 %||Dec 31|
|Exchange Rate||295.1||-0.68 %||Jan 01|
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September 8, 2021
Industrial output grew at a notably softer rate of 10.2% in annual terms in July, following June’s 18.2% jump, according to a preliminary estimate.
September 8, 2021
Consumer prices rose 0.20% from the previous month in August, edging down from July’s 0.50% increase.
September 2, 2021
Economic growth bounced back in the second quarter, with GDP increasing 17.9% on an annual basis (Q1: -2.1% year-on-year). The upturn reflected improvements in private consumption, fixed investment and exports.
August 31, 2021
The GKI economic sentiment index, a composite indicator, edged up to minus 0.6 in August from minus 1.1 in July, the best result since November 20219.
August 25, 2021
At its 24 August meeting, the Monetary Council of the Hungarian National Bank (MNB) decided to raise its base rate to 1.50% from 1.20%, marking the third consecutive increase.