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Hungarian GDP growth accelerates to 5.0 percent by the end of 2018

Hungarian GDP growth accelerates to 5.0 percent by the end of 2018

Hungary’s annual GDP growth accelerated to 5.0 percent in the fourth quarter of 2018, the Central Statistical Office (KSH) said in a first reading of data on Thursday.

The rate was well over the 4.5 percent estimate by analysts polled by business daily Világgazdaság.

Growth accelerated from 4.9 percent in both Q3 and Q2, and 4.5 percent in Q1, bringing full-year growth to 4.8 percent.

Adjusted for both seasonal and calendar year effects, GDP growth stood at 4.8 percent in the fourth quarter.

KSH said “most branches of the national economy contributed to growth, market-based services to the greatest degree”.

Commenting on the fresh data in a statement released by his ministry, Finance Minister Mihály Varga said the big contribution of services to GDP growth last year was supported by a six-year agreement on minimum wage rises paired with payroll tax cuts the government reached earlier with employers and unions. The construction sector, boosted by government measures supporting home building, lifted the production branches of the economy, he added.

Varga said the global economy and the region face “political and economic uncertainty” and noted that the European Commission had recently lowered its projection for economic growth in the European Union.

“In the interest of maintaining the high rate of growth in Hungary and keeping it at least two percentage points over the EU average, the government is helping improve competitiveness with a number of measures and is working on an action plan to defend the economy,” he added.

Source: MTI

1 Comment

  1. Sander Driessen

    Great result! It is to be advised that Hungary will not join the euro in order to remain competitive in the international trade and finance market. See here what Matteo Salvini has said in Brussels recently: He stated that there are more than 20 million unemployed people and that Brussels is only worried about Facebook! See: https://youtu.be/P9eeo5vY_ao
    The Italian Minister of Internal Affairs, Matteo Salvini, knows how to get the attention these weeks. A few days ago he was already in the news after a remarkable exchange with left-wing activists at a party meeting. And now it’s a hit again! This time we see Salvini in Brussels speaking to the European Parliament in which he gives the EU a number of serious blows. According to Salvini, it is incomprehensible that the European Union is so concerned about Facebook as the unemployment in Greece, Italy and Spain is growing. While the members of Parliament are worried about the role of Facebook and other tech companies in Brussels Salvini states that the members of parliament should report to a doctor because they would not be a good sob. Salvini persecuted his tirade but was quickly interrupted by the Italian president. Wait a few minutes and you must speak with respect. Well, if you make fun of the people’s representatives of the barely democratic parliament, you will get a stand. That is not respectful. But that a young man in Naples cannot find work because the euro helps his economy to grow has nothing to do with respect. That is only collateral damage in the pursuit of the perfect Union. Maintaining European values is much more important than any unemployed Greek or Italian. So it is logical that Salvini is furious and is on a collision course towards Brussels. But the core of Salvini’s argument naturally is correct. The operation of the Eurozone seems to have aggravated the crisis, especially for countries such as Spain, Italy and Greece. Apart from the fact that they themselves have not been sensible with their resources, the expensive euro does not help them further. And instead of setting priorities they also appear to be quite busy in Brussels with totally irrelevant topics for Italy. Whether Facebook is a danger to democracy or the fight against fake news. It will certainly not be the last time we hear from Salvini. Even if it was only at the moment that the enormous debt for the Italians rises too fast and too high. And Matteo is right! Not only Italian people suffer from the euro, the same goes for people in most of the Euro-countries. It is therefor wise that Hungary to stay away from the Eurogroup and keep their own currency!

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