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Hungarian GDP growth 3.7% in Q1-Q3 2017

Hungaryʼs third-quarter GDP growth was 3.6% year-on-year, the Central Statistical Office (KSH) said in a flash estimate released on Tuesday. The pace of growth accelerated from a revised 3.3% in Q2. The main contributors to growth were market-based services, stated the statistics office.

The gross domestic product of Hungary was up by 3.6% in the third quarter of 2017 according to raw data, and by 3.8% according to seasonally and calendar-adjusted and reconciled data, compared to the corresponding period of the previous year.

The volume of GDP rose by 3.7% in the first three quarters of 2017, compared to the first three quarters of 2016.

Adjusted quarter-on-quarter GDP growth was 0.8% in Q3, edging down from 0.9% in Q2.

Speaking on public television channel M1 after the release of the data, Minister for National Economy Mihály Varga noted the impact of the booming construction industry on growth, while adding that the automotive industry is also continuing to perform well.

At the same time, Varga acknowledged the under-performance of the farm sector because of drought, but said that "we donʼt see this as a problem."

The governmentʼs official target for GDP growth this year is 4.1%.

The European Commission recently projected this yearʼs GDP growth for Hungary at 3.7%, while the IMF forecasts growth of just 3.2% in 2017 in its November regional economic outlook for Europe.

A second estimate of third-quarter GDP figures will be released by the KSH on December 5.