Are you sure?

Hungary GDP drops 1.2% on year, 0.2% on quarter in Q2

Hungary's GDP fell 1.2% year-on-year in the second quarter, both according to unadjusted and workday-adjusted figures, the Central Statistics Office (KSH) said in a first reading on Tuesday.

Second-quarter GDP fell 0.2% quarter-on-quarter, seasonally- and calendar year-adjusted data show.

GDP fell for the second quarter in a row in a quarterly comparison, meaning a recession. KSH upped the Q4 2011 figure from no-change to 0.1% growth. The earlier figures showed that GDP fell or contracted starting Q2 2011.

Analysts polled by the financial daily Napi Gazdaság had put the Q2 yr/yr drop to slightly over 1% and the quarterly fall to 0.1%. London analysts' forecast varied between a yr/yr contraction of 1.2% and 1.3% and a quarter-on-quarter drop between 0.1% and 0.4%.

KSH revised the Q1 2012 quarterly decline down from 1.2% to 1.0%. GDP fell 0.3% instead of 0.2% in Q2 2011, did not change in Q3 and rose 0.1% in Q4 last year, the fresh revisions show.

Q1 GDP dropped an unadjusted 0.7% and a workday-adjusted 1.2% yr/yr, the same as in the previous report. Q1 2012 saw the first yr/yr GDP contraction since Q4 2009, which ended five quarters of decline.

GDP fell 1.0% yr/yr in Q2 according to seasonally and workday-adjusted figures used for EU comparisons.

Hungary's GDP growth rose an unadjusted 1.6% and a workday-adjusted 1.7% in 2011.

A few tenths of a percentage point of the 1.2% yr/yr contraction in Q2 reflected agriculture, KSH department head Péter Szabó told reporters. About half of the economic branches stagnated, GDP in agriculture and the construction sector contracted and the info-communication branch showed growth in Q2, KSH said.

KSH is scheduled to publish a second reading of Q2 GDP figures on September 7.