Hungary's Q2 GDP stagnates in quaterly terms

Figures

Hungary's GDP rose by 1.5% according to both unadjusted and calendar-adjusted figures year-on-year in the second quarter, and was flat according to seasonally and calendar-adjusted figure from the first quarter, the central statistics office KSH said in a second estimate on Thursday.

The second reading was similar to the preliminary estimate which KSH published on August 16.

The GDP growth was still mainly due to the industrial exports, KSH said.

In Q1, GDP grew 2.5% according to both unadjusted and calendar-adjusted figures year-on-year, and was up 0.3% according to seasonally and calendar-adjusted figure from Q4 2010.

In Q2, GDP increased by 1.2% yr/yr adjusted for seasonal and calendar effects.

In Q2, on the demand side households' final consumption expenditure was up 0,4% yr/yr after a 0,8% decline in Q1. Final government consumption was up 0,1% yr/yr after growing 3.8% in Q1. Gross fixed capital formation decreased by 8.1% yr/yr -- shaving off 1.5 percentage points from GDP -- after loosing 1.6% in Q1.

Exports were up 8.8% yr/yr after adding 14.4% in Q1, and imports grew 6.1% after a 14.4% annual plus in Q1.

While construction investments decreased significantly, investments in machinery and equipment grew, mainly due to the investments of manufacturers of transport equipments; computer, electronic products; food and beverages. Among industries having major share in investments, they continued to drop in real estate activities, transport and storage significantly.

In the balance of external trade there was a surplus of HUF 675 billion at current prices in Q2. External trade contributed to GDP growth by 2.8percentage points. The exports of products increased by 8.2% and their imports by 6.6%. The export and the import volume of machinery and transport equipments and manufactured goods increased over the average, while that of food, beverages and tobacco and fuels and electric energy grew lower than average. The import volume of gas decreased significantly, while the import volume of liquid fuels showed a two-digit rise. Both the exports and the imports of services increased, by 11.3% and 3.3%.

On the supply side, agriculture, forestry and fishing volumes were up 24% yr/yr in Q2 after increasing by 2.9% in Q1. Manufacturing added 6.6% after 12.3% in Q1, while construction shrank by 10.3% yr/yr after loosing 7.1% in Q1.

Services' output fell 0.3% yr/yr after increasing 0.2% in Q1, due mainly to a decrease of 4.6% yr/yr in financial and insurance activities and a drop of 2.6% in real estate activities. Output of information and communication grew 1.9% yr/yr after growing 0.2% in Q1. Trade, repair, hotels and restaurants added 0.6% yr/yr after a 0.4% output growth in Q1.

According to seasonally adjusted data the economic performance remained stagnant in Q2 compared to Q1. Agriculture increased by 9.2%, industry decreased by 0.9%, construction fell by 4.9%, and services total by 0.2%. Households' final consumption expenditure stagnated. The social transfers in kind from government declined by 0.8%. Actual final consumption of government decreased by 0.7% and actual consumption by 0.4%. Exports went down by 1%, imports fell 3.5%.

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