In the third quarter of 2015, the Hungarian economy expanded by 2.3 percent year-on-year and by 0.5 percent month-on-month. GDP growth averaged 2.8 percent in the initial three quarters of 2015. Growth that was lower than in prior quarters stemmed from weaker agricultural sector output due to a dry summer. Excluding that factor, analysts of the Ministry for National Economy estimate that GDP growth would have reached some 3 percent.

The GDP growth structure continues to be favourable and stable, and the expansion has not been generating debt.  Thus, Hungary exposure and vulnerability to external shocks have been significantly reduced.

The pace of growth is still higher than the EU average.Currently available data show that certain external risk factors, such as the migration situation, the VW scandal or the deceleration of China’s economy, have not hitherto had a major effect on domestic economic processes.

In order to sustain growth, the Government is focusing on four main priorities: accelerating the disbursement of EU funding, boosting lending, facilitating a more flexible labour market and promoting investment and the construction and refurbishment of homes. These four pillars are expected to secure Hungary’s development and economic growth also in the long term. Thanks to robust growth, Hungary’s economic output had reached the pre-crisis level already at the beginning of the year.

(Ministry for National Economy)