Hungary’s GDP grew by an annual 4.0% in the third quarter, slowing from 6.5% in Q2 on a “significant” decline in the agricultural sector, the Central Statistical Office (KSH) said in a first reading of data on Tuesday. KSH said all branches of the national economy contributed to headline growth, with the exception of the agricultural sector. Growth was supported especially by industry, particularly the automotive, computer, electronics and optical equipment, and electrical equipment manufacturing segments. It was in addition supported by market services, notably logistics, professional and administrative services, KSH added.
Adjusted for seasonal and calendar year effects, Q2 GDP growth was 4.1%. Quarter on quarter, adjusted GDP dropped by 0.4%. GDP growth in Q1-Q3 climbed by an annual 6.1%.
Commenting on the data, Finance Minister Mihály Varga said that the Hungarian economy was resilient to the harmful effects of the war in Ukraine and sanctions, and grew beyond expectations. The recent GDP data is “among the most favourable among EU countries”, he said. Growth has been driven by the one million jobs created by the government since 2010, as well as by a growing industry, retail and services sectors, the minister said in a video message posted on Facebook. EU sanctions are expected to push European economies into recession next year, he warned. “We in Hungary are working to offset the harmful international effects and save the economy from recession,” Varga said.