In the second quarter, Hungary’s gross domestic product (GDP) increased by 6.5 percent compared to the previous year, the Central Statistical Office (KSH) reported on Wednesday based on its first estimate.
Analysts expected a lower annual GDP growth of 6.1 percent and 0.4 percent compared to the previous quarter.
Hungarian Minister of Finance Mihály Varga took a victory lap on social media, highlighting how Hungary continues to grow despite the war in Ukraine, which has put immense pressure on the economies of Central Europe.
He noted that the 6.5 percent GDP growth figure in the second quarter comes on the heels of 8.2 percent growth in the first quarter.
While Hungary faces significant challenges this winter due to Europe’s ongoing energy crisis, the figures are sure to assuage some fears and boost confidence in the economy, according to Hungarian media outlet Magyar Nemzet.
Varga emphasized that it is good that Fitch Ratings confirmed Hungary’s strong debt rating despite the war crisis and European recession fears.
The data shows that industry and services contributed the most to the growth. Within industry, the expansion of the food industry and the production of electrical equipment was particularly significant, and among market services, the expansion of accommodation services, catering, and transportation and storage was significant.
A significant decline in agriculture curbed growth, added KSH.
The Central Statistical Office will announce the detailed data of second quarter GDP on Sept. 1.