In Q1 2018, Hungary’s GDP grew by 4.4 percent, the same rate shown by preliminary data. Data adjusted for seasonal and working day effects, which better reflect underlying trends, show an even higher increase of 4.7 percent.

Economic growth has been broadly based, almost every sector posted growth. The performance of the market services sector, and that of sub sectors such as tourism, retail and real estate services, was especially impressive.

Incoming data have proven the strong growth potential of the Hungarian economy. The sound performance of the economy also reflects the simulating effect of the six-year tax and wage agreement.

The volume of retail sales grew twice as much as it did last year, and domestic tourism has also seen double-digit growth. On the other hand, the volume of housing output increased by 65 percent, signalling the success of the Government’s Housing Programme.

The fact that external and internal balance indicators are favourable and growth has not been generated by new debt signals the sustainability of expansion.
Hungary’s performance was impressive also from an international perspective: in Q1, adjusted data show that the economies of EU member states grew on average by 2.4 percent year-on-year, and Hungary’s growth rate is the fourth highest according to data avaialable from 21 countries.
The Ministry of Finance is expecting that, in line with the full-year growth estimate of 4.3 percent, the rate of GDP is to exceed 4 percent in coming quarters, too.

(Ministry of Finance)