Hungary Q2 GDP nosedives 13.6 pc – UPDATE

Hungary’s economic output shrank by an annual 13.6 percent in the second quarter this year, with industry and services contracting sharply due to the pandemic, according to a second reading of the data published by the Central Statistical Office (KSH) on Tuesday.

Adjusted for seasonal and workday effects, GDP fell by 13.5 percent in Q2.

In a quarter-on-quarter comparison, GDP was down an adjusted 14.5 percent.

For the first half, GDP declined by an unadjusted 6.1 percent.

KSH said the contribution of services to the year-on-year GDP decline was 6.8 percentage points. Industry contributed 4.3 percentage points to the drop and the construction sector 0.7 of a percentage point.

On the production side, gross added value in the industrial sector dropped 20.1 percent and the construction sector contracted by 13.2 percent.

Services declined by 12.2 percent as the commerce, commercial accommodations and catering sector contracted by 12.6 percent and the ICT sector shrank 1.8 percent.

The public administration, education, health-care and social services sector contracted by 13.0 percent

On the expenditure side, actual final consumption of households fell by 8.6 percent and gross fixed capital formation dropped 13.5 percent.

KSH said

actual final consumption contributed 4.5 percentage points to the headline decline and gross fixed capital formation 1.4 percentage points.

The trade balance contributed 7.7 percentage points to the economic contraction.