Government Consumption in Hungary
The economy of Hungary recorded an average growth rate of 4.1% in government consumption in the decade leading up to 2022. In 2022, the government consumption growth was 0.4%.
Hungary Government Consumption Chart
Note: This chart displays Government Consumption (ann. var. %) for Hungary from 2014 to 2023.
Source: Macrobond.
Hungary Government Consumption Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Government Consumption (ann. var. %) | 9.5 | 4.2 | 2.5 | 0.8 | -1.5 |
GDP records best reading since Q3 2022 in Q1 2024
A second release confirmed that GDP grew 1.1% year on year in Q1 2024, above the flat reading seen in Q4 2023. Q1's reading marked the best result in over a year. On a seasonally adjusted quarter-on-quarter basis, GDP rose 0.8% in Q1, having been flat in the previous quarter.
Private consumption strengthened, growing 3.6% year on year in the first quarter, which marked the best reading since Q3 2022 (Q4 2023: +0.3% yoy). Government spending, meanwhile, slid at a milder pace of 2.7% in Q1 (Q4 2023: -5.1% yoy). Less positively, fixed investment declined at a quicker rate of 6.9% in Q1 from the 2.8% decrease recorded in the prior quarter. On the external front, exports of goods and services fell 5.3% on an annual basis in the first quarter, which was a deterioration from the fourth quarter's 4.1% contraction. Meanwhile, imports of goods and services dropped at a quicker rate of 9.2% in Q1 (Q4 2023: -8.4% yoy).
GDP growth is expected to pick up from Q1 in the remainder of 2024. A declining unemployment rate and the ongoing monetary policy easing cycle should support private spending. Recoveries in exports, public spending and fixed investment should add further impetus. Stronger-than-expected demand from the broader EU is an upside risk.
ING analysts Peter Virovacz and Dávid Szonyi commented on the outlook: “Overall, we anticipate a slightly changing growth structure in the coming quarters, where domestic demand, and especially consumption, will become more prominent, while the contribution of net exports may decline compared to the current level. If, however, the improving external economic conditions in the second half of the year can provide a positive impulse for the industrial sector, we see an opportunity for a positive surprise through a resurgence in net exports. For the time being, we maintain our previous forecast of a 2.2% GDP growth for the current year, with significant upside risks.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Hungarian government consumption projections for the next ten years from a panel of 18 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 government consumption forecast available for Hungarian government consumption.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Hungarian government consumption projections.
Want to get access to the full dataset of Hungarian government consumption forecasts? Send an email to info@focus-economics.com.
Latest Global GDP News
-
GDP declined 0.2% on a seasonally adjusted quarter on quarter basis in the second quarter, contrasting the 1.3% expansion logged...
-
China: GDP growth records slowest increase since Q1 2023 in the second quarter
GDP growth slowed to 4.7% on a year-on-year basis in the second quarter, down from 5.3% in the first quarter... -
Singapore: GDP growth loses steam in the second quarter
According to a preliminary estimate, GDP growth ticked down slightly to 2.9% year on year in the second quarter, from... -
Guatemala: GDP growth accelerates in the first quarter
The economy started the year on a stronger footing, with GDP expanding 3.3% year on year in the first quarter... -
United Kingdom: Economic activity gains steam in May
GDP increased 0.4% in month-on-month seasonally adjusted terms in May, which followed April’s flat reading and was double market expectations.... -
Kenya: GDP growth remains largely stable in Q1
In the first quarter of 2024, the economy posted a robust expansion of 5.0% year on year, largely stable from... -
Angola: GDP growth records quickest upturn in nine years in Q1
The economy surged in the first quarter, expanding 4.6% year on year, which more than doubled Q4 2023’s upwardly revised...