Hungary’s first-quarter GDP climbed by an annual 4.4 percent, the Central Statistical Office (KSH) said in a first reading of data released on Tuesday.
Adjusted for seasonal and calendar-year effects, GDP was up by 4.7 percent, KSH reported.
KSH said market-based services, especially trade and tourism, were the main contributors to growth during the period.
Quarter-on-quarter, GDP rose by an adjusted 1.2 percent.
KSH will publish a second reading of the data on June 5.
Hungary’s government targets full-year GDP growth of 4.3 percent.
Speaking on public television after the release of the data, Economy Minister Mihály Varga said the economy had remained on the growth path in spite of unfavourable weather and fewer workdays. Growth in the tourism sector has been in the double digits for years, but increases were moderate in the farm and industrial sectors, he said on news channel M1.
Varga also counted home construction among the engines of growth during the period.
Takarékbank analyst Gergely Suppán said Q1 growth was slightly over the consensus. Growth in the coming quarters could be lifted by a wave of home and office building completions, EU-supported investments and continued strong consumption, he added.
Takarékbank is raising its forecast for full-year growth from 4.5 percent to 4.6 percent, he said.
ING Bank chief analyst Péter Virovácz said wage increases may have contributed to the strong Q1 growth. New industrial capacity could boost growth in the coming quarters, he added.
ING Bank has raised its forecast for 2018 GDP growth to 4 percent, he said.