Hungary’s GDP Grows 1.5% in Q2: Central Statistics Office
Hungarian GDP Grows by 1.5 Percent in Second Quarter
The Hungarian gross domestic product (GDP) showed growth of 1.5 percent on an annual basis in the second quarter, according to data released by the Central Statistics Office (KSH) in a preliminary report on Tuesday.
When adjusted for calendar year effects, the GDP growth rate was 1.3 percent. However, on a quarterly basis, the GDP saw a slight decline of 0.2 percent after being seasonally and calendar year-adjusted.
The growth in GDP was largely driven by the construction sector, real estate transactions, and the balance of product taxes and subsidies, as reported by KSH.
Finance Minister Mihály Varga expressed optimism about the country’s economic prospects, despite challenges such as the conflict in Ukraine and economic slowdown in key European export markets affecting industrial output.
Varga highlighted the government’s efforts to strengthen the budget, with an additional 1,000 billion forints (EUR 2.5bn) allocation providing more flexibility for growth initiatives amid external uncertainties.
Notably, real wages have increased by 10 percent on average, thanks to measures taken to tackle inflation and raise salaries. The rise in consumption reflects growing confidence in the economy, supported by positive growth forecasts from international bodies like the IMF and European Commission.
Varga also mentioned that international credit rating agencies have affirmed Hungary’s growth potential, and the government remains committed to maintaining fiscal stability while fostering economic growth.
For more insights on Hungary’s economic performance, watch Finance Minister Mihály Varga’s video update on Facebook.
As the Hungarian economy continues to expand, the latest GDP figures suggest a stable growth trajectory despite external challenges, setting a positive tone for the country’s development in the coming months.
