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Fresh GDP data show end of recession

Fresh Q1 GDP data published by the Central Statistical Office (KSH) show an end to the recession in Hungary, analysts told MTI.

Hungary's GDP grew an unadjusted 0.1% in Q1 from the same period a year earlier, after five consecutive quarters of contraction, KSH said. In a quarter-on-quarter comparison, GDP climbed an adjusted 0.9% in Q1, picking up from a 0.2% rise in Q2, the first rise after six consecutive quarters of contraction.

Hungarian analysts had estimated GDP fell about 1.7% in Q1 year-on-year.

Raiffeisen Bank analyst Zoltán Török said quarter-on-quarter growth in Q4 and in Q1 show Hungary has come out of the recession. He attributed growth in Q1 to strong manufacturing sector exports.

The better-than-expected Q1 data mean full-year projections will have to be reassessed, he said. Hungary's economy could expand even more than 1% in 2010 in light of the fresh data, he added.

György Barta of CIB Bank said industrial sector exports were probably behind the bigger-than-expected growth in Q1. The second reading is likely to show domestic demand remained weak, he added.

Barta said he continued to project GDP would stagnate for the full year.

Takarékbank's Gergely Suppan also said industrial sector exports boosted growth in Q1. (MTI – Econews)