Growth indicates ‘strong expansion,’ says CIB



Despite both WDA and SWDA figures lagging behind the unadjusted figure by half a percentage point, Hungary’s 4.1% GDP growth figure posted for Q1 today is above market expectations and indicates “strong expansion,” according to a flash report sent to the Budapest Business Journal by CIB Bank Hungary.

Additionally, the measured quarter-on-quarter growth figure of 1.3% in Q1 represents a nearly double-pace growth, as the highest such figure in the past two years, CIB notes.

The industrial sector and market-based services appear to support Hungary’s economic growth in particular.

“Based on recent monthly data, we see the industrial performance as a reflection of growth in several sub-sectors (including electronics and optics), not solely the contribution of the past few years’ expansion of auto industry capacities,” the CIB flash explains.

“The value added from construction might have been modest, though year-on-year figures are relatively high due to the low base. Agriculture stagnated. The service sector was supported further by strengthening domestic demand. Despite the latter, net exports were still probably negative contributors to growth, with moderate dynamics on the import side,” the flash adds.

CIB expects the market consensus on the annual GDP figure to accelerate again this year.

“In view of the Q1 data, the annual growth rate may come in significantly above 3%, but probably below 4%,” CIB Bank forecasts.

The Central Statistical Office (KSH) will publish further details of Q1 GDP in its second estimate scheduled for June 7. 

Lender Liquidity Increases Further Banking

Lender Liquidity Increases Further

Hungary Condemns Iranian Attack on Israel Int’l Relations

Hungary Condemns Iranian Attack on Israel

Home Rental Rates in Hungary Rise 11.7% in March Residential

Home Rental Rates in Hungary Rise 11.7% in March

Tribe Hotel Budapest Stadium Recognized at LIV Hospitality D... Hotels

Tribe Hotel Budapest Stadium Recognized at LIV Hospitality D...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.