HungaryTrends – The week in business and finance

Budapest (MTI) – See below MTI’s main business and financial news from the previous week:

HUNGARY Q2 GDP GROWTH ACCELERATES TO 2.6 PC

Hungary’s GDP rose by an annual 2.6 percent in the second quarter, accelerating from 0.9 percent growth in the first quarter, the Central Statistical Office (KSH) said in a first reading of data. Market services, industry and the farming sector contributed the most to the increase. Construction sector output continued to weigh on growth. Read more HERE.

OTP Q2 PROFIT CLIMBS 88 PC ON LOWER RISK COSTS, SALE OF VISA EUROPE STAKE

OTP Bank’s consolidated second-quarter after-tax profit jumped by 88 percent to 71.9 billion forints (EUR 232m) from the same period a year earlier on lower risk costs and gains from the sale of a stake in Visa Europe, an earnings report showed.

AUTOMOTIVE SECTOR OUTPUT GROWTH SLOWS TO 3.2 PC IN JUNE

Output growth of Hungary’s automotive sector, a key driver of industry in the country, slowed to 3.2 percent in June from the same month a year earlier, the Central Statistical Office (KSH) said in a second reading of data.

AROUND 100,000 HOUSEHOLDS PLAN HOME PURCHASES, SURVEY SHOWS

About 100,000 Hungarian households say they will or may start the process of buying a home in the coming year, the highest level since the global economic crisis, a survey by economic research institute GKI and business association MGYOSZ showed.

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DECLINE OF CONSTRUCTION SECTOR OUTPUT SLOWS TO 16.2 PC IN JUNE

Output of Hungary’s construction industry fell by an annual 16.2 percent in June, the Central Statistical Office (KSH) said. The pace of the decline slowed from 25.8 percent in May and 30.0 percent in April. Output of the buildings segment rose by 7.4 percent, mainly on the construction of industrial buildings, but also lifted by the construction of schools and sports facilities.

COURT TERMINATES ZSOLNAY LIQUIDATION PROCEDURE

A court in Zalaegerszeg (W Hungary) terminated a liquidation procedure brought against porcelain maker Zsolnay, MTI learnt from the company. Imre Bodnar, Zsolnay’s legal counsel, said the court’s decision may still be appealed, but added that the decision would be “difficult to refute”. Majority owner Bachar Najari earlier complained that his company is “under attack” by parties who want to take over its business on the market for European Union-supported building renovation. Officials of the local council of Pecs, which owns a minority stake in Zsolnay, have said the business is on the verge of bankruptcy and have set up a company to take over its operation. Read more HERE.

CIB GROUP H1 PROFIT REACHES HUF 12.9 BN

Italian-owned CIB group had after-tax profit of 12.9 billion forints in the first half, a big improvement over a 20.9 billion forint loss in the same period a year earlier, the lender said. Net interest revenue dropped by 9 percent to 14 billion forints and net revenue from commissions and fees edged up by 2 percent to 13.9 billion forints, but trading revenue reached 5.3 billion forints, compared to a 3.7 billion forint loss in the base period.

BUDGET DEFICIT REACHES HUF 464.8 BN IN JULY, 61.0 PC OF FULL-YEAR TARGET

Hungary’s cashflow-based budget deficit, excluding local councils, reached 464.8 billion forints at the end of July, 61.0 percent of the full-year target, a first reading of data released by the Economy Ministry showed. The deficit was a little more than half that in the same period a year earlier, a decline the ministry attributed to lower expenditures, such as on co-payments for EU-funded projects, and higher tax revenue from favourable economic trends and a crackdown on tax evasion.

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HUNGARY CPI NEGATIVE 0.3 PC IN JULY

Consumer prices in Hungary fell by an annual 0.3 percent in July on lower vehicle fuel and household energy prices, data released by the Central Statistical Office (KSH) showed. Twelve-month CPI was negative 0.2 percent in both May and June. Read more HERE.

COMPANIES ESTABLISHED BY NBH FOUNDATIONS OUTSIDE OF SCOPE OF PUBLIC PROCUREMENT ACT

Hungary’s Public Procurement Board (KDB) established that companies set up by the National Bank of Hungary’s Pallas Athene Foundations do not fall under the scope of the Public Procurement Act, the foundations said. “The KDB established that the activities of the three companies established by the foundations are conducted on a market basis, in the interest of realising profit, thus they do not fall under the scope of the Public Procurement Act,” they said.

Source: MTI