Hungary Q3 GDP exceeds preliminary data

Detailed data released by the Central Statistics Office (KSH) show that Hungarian GDP in the third quarters of the year grew even faster than expected, Magyar Idők writes.

The final figure came in showing a year-on-year growth of 5.2 percent compared with a preliminary 5 percent, mainly driven by services and retail, analysts said.

This growth is two and half times higher than the average of the European Union. We haven't seen such growth since 1995

"The data shows that we are the second fastest-growing economy of the European Union."

Erste Bank analyst Orsolya Nyeste said the final data reinforced the preliminary ones and domestic consumption was the biggest single growth factor, boosted by increasing real wages, a favorable labor market and more bank loans.

Takarékban analyst Gergely Suppan said the growth had a solid base as almost every sector of the economy contributed to it, including constructions with a 28 percent year-on-year growth. He said growth could have been even higher, but the output of car plants in Hungary only increased by 2.7 percent as they were struggling to meet more stringent emission rules.

Analysts also said that economic growth next year will inevitably be lower - estimates range from 3.5 to 4.2 percent - as the comparison base will be much higher.