Hungary reports adjusted first-quarter GDP growth of 3.7%

May 16, 2017

Hungary’s GDP increased 4.1 percent the first quarter of 2017 year-on-year according to the Central Statistical Office (KSH), exceeding quarterly growth expectations by some 0.6 percent, reports financial online daily vg.hu.

Most of the growth was in the industrial and service sectors.  Adjusting for seasonal and calendar factors, first-quarter GDP growth was 3.7 percent, or 1.3 percentage points higher than the first quarter of 2016.

The Ministry for National Economy attributed the growth in part to higher wages.

Construction activity rose 24.7 percent over last year, which suffered a 27.6 percent decrease in 2016 over 2015.

The financial daily writes that growth in processing industries, including car manufacturing, computers, electronics, and optical products, probably reflects the impact of EU supports, as well as a significant increase in new car sales.

ING Bank head economist Péter Virovácz reportedly told vg.hu that GDP growth may exceed 3.5 percent in 2017, and the 4.1 percent annual growth projected by the Ministry for National Economy does not seem unduly optimistic.