Hungary: Economy expands at fastest pace in seven years
February 14, 2014
In the fourth quarter, GDP expanded 2.7% over the same period last year according to preliminary data released by the Hungarian Central Statistics Office (KSH) on 14 February. The figure exceeded both market expectations of a 2.7% increase and the 1.8% expansion recorded in the third quarter. The expansion marked the highest growth rate since December 2006. According to KSH, the increase came on the back of an improvement in agriculture, manufacturing and construction.
Compared to the preceding quarter, GDP expanded a seasonally-adjusted 0.6% in Q4, which was below the 0.8% increase recorded in Q3. Detailed data will be published on 5 March.
The Central Bank expects the economy to expand 2.1% in 2014 and 2.4% in 2015. FocusEconomics Consensus Forecast panelists expect a 1.8% expansion in 2014, which is unchanged from last month's projection. For 2015, the panel expects growth to accelerate to 1.9%.
Author: Dirina Mançellari, Senior Economist