GDP up 3.2% in second quarter, says KSH flash

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The gross domestic product of Hungary was up an unadjusted 3.2% in the second quarter of 2017 compared with the corresponding period of the previous year, according to a first release of data from the Central Statistical Office (KSH). The volume of GDP rose by 3.7% in the first half compared to a year earlier.

The rate of growth slowed from 4.2% in the first quarter. The main contributors to growth in Q2 were market-based services, according to the KSH.

Adjusted for calendar effects, GDP rose 3.8% in Q2, decelerating slightly from 3.9% in Q1.

KSH department head Zsuzsanna Boros Szőke said the growth rate was impacted by a slowdown in industrial output and a decline in the output of the farm sector.

Analysts had put Q2 growth at 3.6% prior to the release.

Compared to the previous quarter, the volume of GDP grew by 0.9%  in the second quarter of 2017, slowing from 1.4% quarter-on-quarter growth in Q1, according to seasonally and calendar-adjusted and reconciled data.

Speaking to state news wire MTI, ING Bankʼs chief analyst Péter Virovácz said growth could climb back to around 4% in the coming quarters, lifting the full-year rate of increase to 3.9%.

K&H Bank senior analyst Dávid Németh attributed the slowdown to the weaker performance of the industrial sector and a high base. He put GDP growth for the full year at 3.8%.

A second estimate of GDP figures for the second quarter will be published by the KSH on September 5.

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