Varga expects growth of over 4% throughout year

MNB

GDP growth was very favorable in the first quarter and could exceed 4% throughout the year, Minister for National Economy Mihály Varga told a press conference after the release of a first reading of Q1 GDP data earlier in the morning, state news wire MTI reported.

Hungaryʼs GDP grew by an unadjusted 4.1% year-on-year and rose 3.7% according to both calendar and seasonally adjusted data in the first quarter, a first reading of data published by the Central Statistical Office (KSH) on Tuesday shows. Compared to the preceding quarter (Q4 2016), Q1 GDP was up an adjusted 1.3%.

The Q1 growth rate exceeded analystsʼ consensus expectation of 3.5%. 

Varga confirmed the KSH observation that mainly industry, the construction sector and market services contributed to growth in the quarter.

Varga expressed hope that credit rating agencies and international organizations will revise their own forecasts in the light of the favorable figures.

In December, the Ministry for National Economy revised government forecasts for GDP growth to 4.1% for 2017, and to 4.3% in 2018. While most international organizations have upped their projections for Hungarian growth, their forecasts still remain below those of the government.

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