Hungary's GDP growth accelerates to 3.5% in Q1

Analysis

Hungary's unadjusted y. o. y. GDP growth accelerated to 3.5% in the first quarter from 2.7% in Q4, the Central Statistics Office (KSH) confirmed in a second reading of data published on Wednesday.

KSH revised the increase adjusted for calendar year effects to 3.5% from 3.4% in the first reading, published in mid-May. Seasonally- and calendar year-adjusted GDP growth was 3.2% y. o. y. and 1.1% quarter-on-quarter, KSH confirmed the data in the first reading.

The detailed data reveal that industry contributed 1.6 percentage points to growth, while services contributed 0.9 percentage point and the construction sector half a percentage point. On the utilization side, domestic utilization contributed 3.0 percentage points, with final consumption adding 1.5 percentage point and gross capital formation 1.6 percentage points. Net exports contributed half a percentage point.

Added value in the industrial sector climbed 6.7% during the period. Within the sector, the manufacturing segment has grown by 9.6%, having been boosted by automotive industry companies, KSH argued. Added value in the construction sector jumped 25.2%. It was up 1.5% in the service sector, lifted by a 4.0% increase in the delivery and logistics segment.

On the utilization side, actual household consumption increased 1.6% and public consumption climbed 3.5%. Gross fixed capital formation rose 13.3%. Domestic utilization was up 3.3%.

-- Christian Keszthelyi contributed to this article

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