KSH confirms GDP dipped in Q1
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.
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