Hungarian GDP rose by 4.4 percent in the second quarter of the year, compared to the same period in 2017. The boost was mainly due to the strong performance of the services sector and despite a minor slowdown the annual growth target remains realistic.
According to Origo.hu, GDP growth in the first quarter of the year was 4.7 percent, but the second quarter data still exceeded analysts’ expectations.
László Balogh, deputy minister of state at the Finance Ministry said this indicated that the country remains on a strong and sustainable growth path.
“The seasonally adjusted 4.4 percent figure is twice as high as the EU average,” he said.
The unadjusted growth was 4.6 percent, four decimal points above analysts’ expectations.
Balogh also said that a six-year wage agreement between the government, employers and employees resulted in a 10 percent increase in real wages, pointing towards continued strong domestic consumption.
Overall, GDP growth data indicates that Hungary’s goal of a 4.3 percent growth set out in the government’s convergence program remains realistic.
Unlike the country’s economic growth in the mid-2000s which was mainly financed through borrowing, the current one is based on rising investments and a reduction in corporate taxes to 9 percent, making it sustainable.
