BUDAPEST: Hungary’s economy grew by an annual 3.5% in the first quarter, lifted by strong performances in manufacturing and services. The headline figure was revised upward from a preliminary estimate of 3.4%, according to the Central Statistical Office (KSH). Added value in the industrial sector was up 7.7%. The increase included an 8% rise in the manufacturing segment, supported by automotive industry companies, the KSH said. Industry contributed 1.8 percentage points to headline growth, services 1.3 points and construction 0.2points, while the farm sector had a negative impact of 0.3 points.
The production side of the economy is stable as industry, manufacturing and construction expanded significantly in the first quarter, the economy minister, Mihály Varga, told public television, commenting on the KSH release. The data puts Hungary top of the class in the European Union, he told the M1 channel. An expansion in exports and consumption also contributed to economic growth, he said, adding that another positive is that export growth is not slowing down as more and more Hungarian companies are situating themselves on foreign markets.
Meanwhile Hungary’s industrial output grew by an annual 6.3% in April, based on a preliminary estimate by the Central Statistical Office. The increase was the same when adjusted for the number of workdays. Output growth decelerated from 11.6% in the previous month. In a month-on-month comparison, industrial output edged down 0.1%, adjusted for seasonal and workday effects.
