Big final quarter helps Hungary’s GDP grow 2.9% in 2015

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A year-on-year gross domestic product increase of 3.2% in the last quarter of 2015 helped drive total GDP growth last year to 2.9%, Hungary’s Central Statistical Office (KSH) announced today.

The rise in GDP for the final quarter was aided by rapid growth in manufacturing and by an increase in public consumption and investments, both likely reflecting the impact of the urgent need to spend European Union funding from the 2007-2013 cycle by the end-of-year deadline, Hungarian news agency MTI reported.

According to KSH, industry contributed 1.6 percentage points and services 1.7 percentage points to Q4 GDP growth, with wholesale and retail trade as well as accommodation and food service activities making the most significant contribution (0.6 of a percentage points) within services. The decrease of value-add in agriculture lowered the GDP’s Q4 growth rate by 0.4 of a percentage point, KSH added.

The balance of external trade generated a surplus of HUF 623 billion forints and contributed 0.2 of a percentage point to GDP growth in the final quarter. In that period, exports increased by 7.7% and imports by 8%, KSH added.

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