Hungary GDP Growth Accelerates to 1.8% YoY in Q3

In the third quarter of 2013, the Hungarian economy advanced 1.8 percent over a year earlier, up from 1.7 percent in the initial estimate. It is the highest growth rate in the last two and a half years.

Year-on-year, agriculture increased by 27.6 percent after a low base a year earlier. Manufacturing grew 1.7 percent. Within manufacturing the highest growth rate was reported in transport equipment and the highest fall was recorded in basic pharmaceutical products and pharmaceutical preparations. Construction increased by 7.3 percent, due to both construction of buildings and civil engineering. 

Services rose 0.1 percent. The gross value added of wholesale and retail trade, accommodation and food service activities grew by 0.3 percent and the performance of financial and insurance activities decreased by 2.2 percent. Corporate borrowing increased slightly due to the loans provided at preferential rates to SMEs, but in case of households the volume of loans decreased significantly despite the low-cost options for home loans. The performance of both life and non-life insurance businesses further decreased compared to the same period of the previous year.

On the expenditure side, the final consumption of households stagnated in the third quarter of 2013, compared to a year earlier. Household final consumption expenditure, the main component of the final consumption of households, went up 0.1 percent. Gross fixed capital formation accelerated to 8.2 percent. Exports of goods increased by 7.2 percent and their imports by 6.3 percent.

Quarter-on-quarter, the economy grew a seasonally and calendar-adjusted 0.9 percent, up from 0.4 percent in the previous three-month period.

Hungary GDP Growth Accelerates to 1.8% YoY in Q3

KSH | Joana Taborda |
12/4/2013 10:56:56 AM