The performance of the Hungarian economy in the first quarter was 0.9 percent below the same period of the previous year. Furthermore, it was 0.2 percent down compared to the previous quarter.
Adjusted for seasonal and calendar year effects, GDP contracted by 1.1 percent.
The Hungarian Central Statistical Office (KSH) said industry contributed the most to the decline, while the drop was moderated by the performance of agriculture and services.
Quarter on quarter, GDP slipped by an adjusted 0.2 percent.
In a statement, the ministry of economic development attributed the decline in GDP to the war in Ukraine and “the failed, extremely harmful sanctions”.
It said it was clear from the data that the harmful effects of sanctions “peaked in the first quarter” and economic performance hit a nadir at this level. An uptick will be noticeable in the second quarter “owing to targeted government measures”, it added.
The ministry noted an increase in car and battery production, agriculture, the health industry, and in services, while the second half of the year will see a “more radical phase of growth”.
The government maintains its growth target of 1.5 percent coupled with the expectation that inflation will be reduced to single digits by year-end, “with a view to protecting families, pensioners, jobs and full employment”.