Hungary’s economy grew by an annual 3.2 percent in the second quarter
Hungary’s economy grew by an annual 3.2 percent in the second quarter, driven by growth in market-based services, the construction sector and industry, the Central Statistical Office said in a second reading of data released on Tuesday.
Services added 1.5 percentage points to growth, the construction sector 0.8 percentage points and industry 0.7 percentage point.
ING analyst Péter Virovácz said, commenting on the data, that GDP growth was expected to speed up in the second half of 2017. If consumption reflects the changes in the labour market and industrial growth gains momentum, July-December data may surpass 4 percent, he said.
Dávid Németh of Takarékbank forecast a 3.8 percent growth for H2. Growth is likely to slow to 3.5 percent next year, he said.
The official government projection for GDP growth this year is 4.1 percent.
KSH said the unadjusted year-on-year and quarter-on-quarter GDP growth figures were unchanged from the first reading released on August 16, but the adjusted year-on-year figure was revised down from a preliminary 3.6 percent. Unadjusted first-half GDP growth was also revised down, to 3.6 percent. Adjusted H1 growth was 3.7 percent.
As we wrote last week, investments in Hungary rose by an annual 26.8 percent in volume terms in the second quarter of 2017 from a low base one year earlier, the Central Statistical Office (KSH) said.