Hungarian ministry: GDP growth to exceed projection for 2014

Analysis

Hungary's GDP growth this year could exceed the 2.3% projection in the country's updated Convergence Program by 0.3-0.6 percentage point, the National Economy Ministry (NGM) said after a second reading of Q1 GDP data was released on Wednesday.

Hungary's economy expanded by 3.5% in Q1, the Central Statistics Office (KSH) confirmed in the morning. The NGM said Hungary's GDP growth is becoming more balanced and healthier, noting that domestic demand, not just net exports, was supporting the increase.

It said increased capacity of the country's automotive sector, a pickup in both domestic and external demand, higher construction sector output supported by European Union funding, and state and private sector developments had lifted industrial output.

The ministry said growing consumption as well as investments supported the increase in domestic demand. It added that more business activity, the accelerated use of EU funding, favorable growth outlooks, the big increase in home construction, low yields, the National Bank of Hungary's Funding for Growth Scheme and the good business environment would help speed up investment growth.

ADVERTISEMENT

Romanian Salary up in June, Under Inflation Figures

Romanian Salary up in June, Under Inflation

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim... City

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.