Are you sure?

Hungary’s GDP growth adjusted 0.7% in Q4, up 1.3% in 2007

Hungary’s GDP rose 0.7% year-on-year in volume terms in the Q4 of 2007 according to calendar-adjusted and 0.8% according to unadjusted figures, the Central Statistics Office (KSH) announced in a second reading on Friday, unchanged from a first estimate published on February 14.

Fourth-quarter GDP rose by a seasonally- and calendar-adjusted 0.1% from the Q3 of 2007, unchanged from the first reading. In 2007 Hungary’s GDP grew 1.3% according to both calendar-adjusted and unadjusted figures, KSH said. The figure is unchanged from the first estimate. In 2006, Hungary’s GDP grew 4.0% according to calendar year-adjusted figures and unadjusted growth was 3.9%. On the production side, the 2007 slowdown was due to sharp fall of GDP in agriculture (a fall of 13.3%) and in the construction sector (down 11.6%). GDP rose at an above-average 6.2% rate in the industry, including 6.8% growth in the manufacturing sector alone, and rose 1.3% in services last year.

GDP produced by the government sector (public administration, health, education and social work) fell 2.1% in 2007, with the biggest drop in the value added in health services. On the utilization side, household final consumption fell 2.1% last year, mainly due to a sharp 8.9% drop in government in-kind social transfers, KSH noted. Communal consumption fell 3.2%, and final consumption combined fell 2.2%. Domestic utilization fell 0.3%.

Gross fixed capital accumulation rose 1%, mainly due to rising investments in the manufacturing, freight, postal and telecom sectors and in inventory capacities, KSH said. GDP statistics calculated exports rose 14.2% and imports rose 12.2% last year, both below the respective 18.9% and 14.5% increases in 2006. The gap between export and import growth narrowed to 2 percentage points from 4.4 percentage points in 2006 but still remained a main driving force of growth. Export growth in Q4 slowed to 10.4% year-on-year but still exceeded import growth which slowed to 9.2% year-on-year in the Q4.

Within total exports, the exports of goods rose 15% from 2006, and the exports of services rose 9.9%. The import of goods rose 11.6% and the import of services rose 16.4% last year, KSH reported.

2007 GDP totaled Ft 25,374 billion (€95.56 billion) in nominal terms, and GDP per capita was Ft 2.523 million, KSH said. (MTI-Econews)