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Hungary’s second-quarter GDP rose by 4.9% year-on-year, the Central Statistical Office (KSH) confirmed in a second reading of data. On the production side, value added in the industrial sector rose by 3.8% during the period. Within the sector, manufacturing expanded by 3.1%. Growth in the construction sector reached 27.9%. The farm sector contracted by 1.1%. The service sector expanded by 4.2%, as the retail and wholesale trade, commercial accommodations and catering segment grew by 7.5% and the infocommunications segment grew by 5.9%. Professional, scientific, technical and administrative activities increased by 6.5%. KSH said services contributed 2.2 percentage points to headline growth, while the construction sector added 1.2 percentage points and the industrial sector 0.9 of a percentage point.
On the expenditure side, household final consumption increased by 4.5%. Gross fixed capital formation jumped 16.4%. Export volume rose by 2.7% and import volume was up by 4.3%.
KSH said actual final consumption contributed 2.7 percentage points to headline growth and gross capital formation 3.4 percentage points. The trade balance slowed headline growth by 1.2 percentage points. Headline GDP growth slowed from 5.3% in the previous quarter. Adjusted for calendar year effects, GDP growth reached 5.1% year-on-year in Q2, down from 5.3% in Q1. Reconciled data, adjusted for seasonal and calendar year effects, show GDP climbed 5.2% year-on-year in Q2, level with the rate in Q1. In a quarter-on-quarter comparison, GDP growth was 1.1% in Q2, slowing from 1.4% in Q1, adjusted for seasonal and calendar year effects.
K&H Bank chief analyst Dávid Németh augured full-year growth of 4.3%, saying that the slowdown on global markets does not bode well for Hungary’s industrial sector. ING Bank senior analyst Péter Virovácz put growth for the full year at 4.7%, slowing as unfavourable external conditions catch up with Hungary.