Are you sure?

Analysts attribute higher GDP growth to industrial exports

Hungary's year-on-year GDP growth was somewhat higher than expected in Q2 thanks to industrial sector exports, analysts told MTI on Friday after the Central Statistical Office (KSH) published fresh data.

Hungary's GDP climbed an unadjusted 1.0% and a calendar year-adjusted 0.8% in Q2 compared to the same period a year earlier, KSH said. In a quarter-on-quarter comparison, the economy stagnated after a downward revised 0.6% increase in Q1.

Erste Bank's Zoltán Árokszállási attributed growth in Q2 to export-oriented industrial production. Growth of inventories also helped, but the service sector stagnated, he added.

Árokszállási put full-year GDP growth at 0.9% in 2010 and around 3% in 2011, depending on the outlook for global growth as well as the effect of Hungary's recently introduced bank levy.

Győző Eppich of OTP Bank also put Q2 growth down to a pick-up in the industrial sector, as output of the construction and farm sectors declined. The data show how reliant Hungary is on other economies in Europe, which dims the outlook for economic growth because of fiscal adjustments being taken across the continent, he added. Eppich put full-year growth at 0.4%. (MTI-Econews)