Hungary's economy exited technical recession after seasonally adjusted GDP grew 0.7% q/q in the first quarter of 2013, the statistics office said on June 6, confirming the flash estimate. The local economy contracted 1.4% q/q in Q1 2012, by 0.6% q/q in Q2 2012, followed by stagnation in Q3 and a 0.4% q/q drop in Q4 2012.
The statistical office also confirmed the 0.9% y/y contraction in Q1 2013, which however was much slower than the 2.7% y/y drop in Q4 2012.
On the supply side, the agriculture output increased by 12.3% y/y, which was partly due to low base effect. The sector contributed with 0.3pps to the GDP growth. The construction sector increased by 4.2% y/y, on the back of better performance in both construction of buildings and the civil engineering segments. Thus, the construction also had a positive 0.1pps contribution to GDP in Q1. By contrast, the industrial production decreased by 3.2% y/y, following a 2.5% y/y fall in manufacturing. Thus the industry, which had been a key growth driver since Q1 2010, contributed with a negative 0.7pps to GDP contraction. The weak external demand led to a decline in the production of computer, electronic and optical products. On a positive view, the manufacturing of transport equipment expanded in Q1. Services declined by 0.8% y/y and contributed by negative 0.5pps to GDP growth.
On the demand side, net exports continued to have a positive contribution (0.4pps) to the GDP growth. Exports increased by 1.3% y/y in Q1, faster than imports’ growth of 0.9% y/y. Consumption fell by 1.4% y/y, due to shrinking private and government consumption. Gross capital formation contracted by 2% y/y, as investments saw a 5.6% annual decline in Q1. Among industries having major share in investments, there was a significant drop in manufacturing.
|GDP, constant prices||2010||2011||2012||2013|
|Y/Y change, unadjusted data||0.2||1.1||1.8||2.0||1.3||2.6||1.3||1.4||1.3||1.6||-0.6||-1.7||-1.7||-2.7||-1.7||-0.9|
|Q/Q change, seasonally and calendar effects adjudted data||1.0||0.5||0.4||0.3||-||1.2||-0.2||0.0||0.3||-||-1.4||-0.6||0.0||-0.4||-||0.7|
The head of the European Commission Jean-Claude Juncker held talks with leaders of the Visegrad Group at a nearly three-hour dinner on October 19. The dinner on the eve of the EU summit was ... more
Hungary-based no-frills airline Wizz Air has set up subsidiary in the United Kingdom and is considering acquiring an air operators certificate (AOC) in preparation for possible negative impacts ... more
The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more