Mixed developments in Hungary's economy in Q2
“Declining investments and slowing export growth” were the main reasons behind the economy stalling, statistician Péter Szabó told reporters today, says Bloomberg.
Construction output slumped 10.3% in the second quarter from a year earlier and the financial industry’s output slumped 4.6%. Agricultural production rose 24% in the quarter from the April-June period of 2010, Bloomberg continues.
The final consumption of households rose 0.1% in the second quarter from a year earlier after declining in the two previous quarters. Export growth slowed to 8.8% from 14.4% in the first quarter. Investments dropped 8.1%.
Exports to the euro region powered Hungary’s recovery from its worst recession in 18 years, propelling the economy to the fastest growth since 2006 in the first quarter, with factories run by Audi AG and Nokia Oyj boosting production.
Growth in Hungary’s industrial production, the biggest component of GDP with a weight of as much as 25%, slowed to 2.7% in July from 12.5% a year earlier. Retail sales dropped 0.5% in June and contracted for 41 consecutive months through June 2010.
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