Hungary’s Q1 economic stagnation confirmed, OECD predicts turnaround
Hungary’s GDP remained flat in the first quarter of 2025 compared to the same period last year, the Central Statistics Office (KSH) confirmed on Tuesday. Despite the sluggish start, the OECD projects a gradual recovery in the coming years, signaling renewed momentum for the Hungarian economy after a prolonged slowdown.
Hungary GDP flat in Q1, KSH confirms
Hungary’s GDP stagnated in the first quarter compared to the same period a year earlier, the Central Statistics Office (KSH) confirmed in a second reading of data on Tuesday.
Adjusted for seasonal and calendar year effects, GDP edged 0.4pc lower.
Services boosted GDP by 0.7pp, while industry weighed 0.7pp and the construction sector 0.2pp on the headline figure. The balance of product taxes and subsidies added 0.1pp to GDP while the impact of the farm sector was practically neutral.
On the consumption side, final consumption contributed 2.2pp to GDP, while investments and the trade balance dragged the headline figure down by 1.9pp and 0.3pp, respectively.
In a quarter-on-quarter comparison, GDP inched down a seasonally- and calendar year-adjusted 0.2pc.
OECD report
The OECD forecasts Hungary’s GDP growth will reach 0.9pc in 2025 before accelerating to 2.4pc in 2026 in its latest Economic Outlook published on Tuesday.
Private consumption, supported by real wage growth, will be the main engine of growth, especially in 2025, the OECD said.
It sees private consumption growing 5.4pc in 2025. Investments are set to fall by 3.0pc in 2025, then grow by 5.4pc in 2026, according to the forecast.
CPI is seen rising to 4.9pc in 2025, before falling to 3.6pc in 2026. The forecast puts the general government deficit, relative to GDP, at 4.2pc in 2025 and 4.0pc in 2026.
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