KSH confirms GDP dipped in Q1

Analysis

A second estimate confirmed that Hungaryʼs economy contracted for the first time in four years in the first quarter of this year, dropping 0.8% compared to the previous quarter, Hungary’s Central Statistical Office (KSH) said today. 

Year-on-year, the volume of Hungary’s gross domestic product was 0.9% higher in the first quarter, KSH reported.

Data from KSH show that the growth rate was boosted by market services and reduced slightly by industry and significantly by construction.  

According to seasonally and calendar adjusted data, the performance of the economy was up by 0.4% compared to the corresponding quarter of the previous year and down by 0.8% compared to the previous quarter, KSH reported.

The value add of industry as well as of manufacturing within this was down by 0.7% year on year, KSH said. The performance of construction fell by 28%, within which civil engineering decreased the most, while the value add of agriculture dropped 3.5%, KSH added.

The gross value add of services was up 3%, according to KSH. Services contributed 1.6 percentage points to the 0.9% growth of the gross domestic product in the first quarter of 2016, KSH added.

The actual final consumption of households was up 4% compared to the same period of the previous year, KSH said, adding that the volume of social transfers in kind from the government was down 0.3% and that of the actual final consumption of the government grew by 3.4%. As a result of the above trends, actual final consumption rose by 3.9%, according to KSH.

Gross fixed capital formation fell by 7.8%, due in large part to the completion of developments financed from EU sources, which in turn affected the investments of budgetary units to a higher extent, KSH said. Gross capital formation was cut by 3.5% compared to a year earlier, while domestic use as a whole was up 2.4% in the first quarter, KSH added.

ADVERTISEMENT

Czech economic confidence weakens in July Analysis

Czech economic confidence weakens in July

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.