gross domestic product
Hungary’s economic output was 1.1% raw in the first quarter, and even 1.7% higher than a year ago when adjusted for seasonal and calendar day adjustments.
The economic engine has started once more, according to the figures from the Central Statistical Office (KSH) from Tuesday. Compared to the previous three months, economic output increased by 0.8%. The latter is comparable to the dynamic in autumn, which was followed by surprising stagnation in winter. The KSH only added to the first estimate that the service sector, and in particular the real estate and infocommunications sectors, had pulled the economy forward in the first quarter. In its current state, the industry is proving to be more of a hindrance.
Recession was yesterday
“The economy has returned to growth,” said the finance department, commenting on the good figures. The record level of employment and rising real wages, which are finally boosting private consumption, had a stimulating effect on the economy. Construction and tourism are also on the rise once more.
“The recession is now clearly behind us, the only open question from now on is how strong growth will be,” said the Ministry of Economic Affairs’ chief economist, Gergely Suppan. The turnaround in retail was already apparent at the beginning of the year, but tourism and the hospitality industry also contributed to the upswing. Thanks to government programs and falling interest rates, loan advances are also increasing once more.
Statistical error larger
For the first time, the GDP statistics were produced two weeks earlier than usual (30 instead of 45 days following the reporting period). This intervention increases the error interval by 0.2 percentage points.
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