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Hungary: KSH revises 2007 GDP growth downward to 1.1%

  Hungary’s GDP rose 1.1% in 2007 at constant prices, the Central Statistics Office (KSH) reported on Tuesday, after slightly revising upward Hungary’s nominal 2007 GDP to Ft 25,419 billion from 25,406 billion reported earlier.

 

The revised GDP growth is two-tenths of a percentage point lower than was reported earlier in part because the GDP growth rate for the 2006 base was revised upward to 4.1% from 3.9%. The changes resulted from available data from the national account and certain modifications to methodology. (National account statistics based on broader information for 2007 will be published in May 2009.)

Hungary’s per capita GDP was Ft 2.528m in 2007, or €15,751 at purchasing power parity -- 61% of the EU-25 average.

Gross National Income (GNI) was Ft 23,674 billion at current prices, unchanged, in volume terms, compared to 2006. GNI was just 93.1% of GDP in 2007, down from 94.2% in 2006.

Gross added value of the business sector rose 3.9% in volume terms in 2007 and accounted for 50.7% of total GDP, while added value of the general government sector fell 4.0 percentage points and had a 14.5% share of GDP, seven-tenths of a percentage point less than a year earlier.

The revised -- though still not final -- report shows that added value in volume terms declined 22.6% in Hungary’s farm sector, far more than the 14.0% reported earlier. The contraction in the construction sector was revised to 7.7% from 11.6%. Manufacturing performance was revised upward a slight one-tenth of a percentage point to 7.0%.

Gross added value in the service sector was 1.1% (corrected down from 1.3%) in 2007, including a 5.6% (instead of 4.1%) expansion of transport and storage services and a 3.6% (revised from 1.6) rise in retail and wholesale trade and repair. Public services held back service sector growth the most as health services contracted 8.4%. The education segment grew a slight 0.4%.

On the consumption side, actual final consumption of households fell 1.8% according to the second reading, down one-tenth of a percentage point from the earlier figure, in spite of a 0.7% rise in purchased consumption, as opposed to a 0.3% fall reported earlier. Government consumption fell a revised 7.5%, far more compared to the 3.1% decrease reported earlier.

Gross fixed capital formation rose 1.5% in 2007, well over the 0.1% increase in the preliminary report, though a rise in inventories was slower, resulting in a 1.6% rise in total gross capital formation, well below the 5.2% increase in previous reports.

Both, export and import growth was revised upward from 14.2% and 12.0% to 15.9% and 13.1%, respectively. (MTI-Econews)