Economic Growth in Hungary
Hungary's economy recorded an average real GDP growth rate of 3.4% in the decade to 2022, above the 2.5% average for Eastern Europe. In 2022, real GDP growth was 4.6%. For more GDP information, visit our dedicated page.
Hungary GDP Chart
Hungary GDP Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Economic Growth (GDP, ann. var. %) | 5.1 | -4.3 | 7.1 | 4.3 | -0.9 |
GDP (USD bn) | 165 | 158 | 183 | 178 | 213 |
GDP (EUR bn) | 147 | 139 | 155 | 169 | 197 |
GDP (HUF bn) | 47,940 | 48,808 | 55,557 | 66,166 | 75,087 |
Economic Growth (Nominal GDP, ann. var. %) | 10.1 | 1.8 | 13.8 | 19.1 | 13.5 |
GDP growth records best result since Q3 2022 in Q2
GDP reading: GDP growth sped up to 1.5% year on year in Q2 from 1.1% in Q1, marking the best result since Q3 2022. On a seasonally adjusted quarter-on-quarter basis, the economy contracted by 0.2% in Q2, deteriorating from the prior quarter’s 0.7% rise.
Household spending drove the acceleration: Looking at the details of the release, private consumption growth improved to 4.2% year on year in the second quarter (Q1: +3.6% yoy). Less positively, government spending fell at a steeper pace of 3.9% in Q2 (Q1: -2.7% yoy). Additionally, fixed investment slid by 15.4% in Q2 due to contractions in the volume of investment in construction, as well as machinery and equipment, (Q1: -6.9% yoy). On the external front, exports of goods and services fell at a more moderate pace of 1.8% year on year in Q2, which marked the best reading since Q2 2023 (Q1: -5.3% yoy). In addition, imports of goods and services contracted by 3.2% in Q2 (Q1: -9.2% yoy), marking the best performance in a year.
Private consumption to drive 2024 recovery: Looking ahead, the economy is likely accelerating in H2, supporting a rebound in 2024 as a whole thanks to recovering household spending. However, our panel expects public consumption, fixed investment and exports to all contract this year. Stronger-than-expected EU activity, potentially unblocked EU funds and increased nearshoring are upside risks.
Panelist insight: ING’s Peter Virovacz commented on the outlook: “Looking ahead, the main hope is that consumption momentum will continue to improve. However, this would require a more sustained and stronger recovery in consumer confidence, which is unlikely to be helped by inflation creeping above 5% by the end of the year. […] Overall, in light of today's detailed data, we maintain our previous forecast of 1.5% GDP growth this year. Hardly a sudden recovery but at least a sign that the economy is in the process of healing.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Hungarian GDP projections for the next ten years from a panel of 41 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Hungarian GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Hungarian GDP projections.
Want to get access to the full dataset of Hungarian GDP forecasts? Send an email to info@focus-economics.com.
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