Hungary’s third-quarter GDP grew by an annual 5%, the Central Statistical Office (KSH) confirmed in a second reading of data. On the production side, value-added in the industrial sector increased by 7.6% during the period. Within the sector, manufacturing expanded by 8.1%. Growth in the construction sector reached 18.1%, while the farm sector contracted by 1.6%. On the expenditure side, household final consumption increased by 5.0%. Gross fixed capital formation jumped 16.1%. Export volume rose by 8.3% and import volume was up 7.4%.
ING Bank chief analyst Péter Virovácz said the industrial sector had made the most significant contribution to GDP growth in years, although the contribution of services remained in the forefront. On the consumption side, the most important change was the positive contribution of the trade balance, he added. Erste Bank senior analyst Orsolya Nyeste also noted the positive impact of higher net exports on growth, but said the engine of growth remains domestic consumption. She put full-year growth at 4.9%.