Budapest, August 14 (MTI) – Hungary’s GDP grew by an annual 2.7 percent in the second quarter, slowing from 3.5 percent in the previous quarter, the Central Statistical Office (KSH) said in a first reading of data on Friday.
Analysts polled by Portfolio.hu had put the increase at 3.0 percent.
KSH attributed the growth to industrial output and blamed the slowdown on the farm sector.
GDP growth was the same adjusted for calendar year effects, but adjusted for seasonal effects as well growth was 2.4 percent, down from 3.2 percent in first quarter.
In a calendar year- and seasonally-adjusted quarter-on-quarter comparison, GDP growth reached 0.5 percent in the second quarter, edging down from 0.6 percent in the first quarter.
K and H Bank chief analyst David Nemeth said the fresh data augur growth under 3 percent in the third quarter and the fourth quarter, too.
Takarekbank analyst Gergely Suppan noted that a number of harvest data are still not known, which could result in a possible revision of GDP data later. He added that growth could pick up in the second half because of a weak base, impacted by the phase-out of two models at Japanese carmaker Suzuki’s Hungarian plant.
Slower-than-expected growth in the second quarter shows that Hungary’s economy is slowing and that ruling Fidesz has no plans on how to reanimate growth, the opposition Socialists said.
Even Romania’s GDP growth is one percentage point higher which is “a great shame for Viktor Orban’s government,” the party said in a statement. The government’s only idea for growth stimulus is to “beg for money from the EU,” while Fidesz politicians are lining their pockets, it added.