Hungary Economy Grows 3.9 pc in Q2 yr/yr, Beating Expectations

Budapest, August 14 (MTI) – Hungary’s economic output grew by an annual 3.9 percent in the second quarter, according to preliminary data, up from 3.5 percent in the first quarter, the Central Statistical Office (KSH) said today.

The data for the second quarter exceeded analysts’ expectations and the growth rate was the highest one since the first quarter of 2006.

Growth was propelled mainly by increased industrial and construction-sector output, the KSH said.

According to seasonally and calendar year adjusted data, the economy grew by an annual 3.7 percent in the second quarter.

The economy grew by 0.8 percent from the first quarter.

KSH department head Pal Pozsonyi said the strong growth was supported by favourable industrial and construction sector data released on Wednesday. Farm sector performance is also shaping up, in spite of a worse than expected grain harvest, he added.

He said all branches of industry were showing growth. Infrastructure investments are the driving force in the construction sector but the startup of investments in the manufacturing sector is also tangible, he said. Growth can also be seen in the service sector, with the exception of financial services, he added.

Source: http://mtva.hu/hu/hungary-matters