GDP per capita in Hungary
Hungary - GDP per capita (U.S. Dollars)
Second estimate confirms the economy’s strength in Q1
According to a second estimate released by the Central Statistics Office (KSH) on 5 June, the Hungarian economy continued to grow unabated in Q1. GDP expanded 4.4% annually in the quarter, matching the preliminary estimate released a month earlier. The print also matched Q4’s result, which had marked the fastest expansion since Q2 2014. In quarter-on-quarter seasonally- and calendar- adjusted terms, the economy grew 1.2% in Q1, broadly unchanged from Q4’s 1.3% expansion.
Domestic demand was again the main driver of growth in the first quarter. Private consumption expanded a remarkable 5.1% in Q1, nearly unchanged from Q4’s 5.2% increase, which had marked the fastest print in three and a half years. Consumer spending was buoyed by robust wage gains, low inflation and extremely tight labor market conditions. Growth in fixed investment skyrocketed, following an already strong reading in the previous quarter (Q1: +17.1% year-on-year; Q4: +13.1% yoy). The double-digit jump in fixed investment was buoyed by rising inflows of EU investment funds and came on the back of a sharp increase in construction and machinery and equipment investment. Accommodative monetary policy and upbeat business sentiment also continued to fuel fixed investment. Public consumption, meanwhile, grew 4.6% in Q1 (Q4: +8.8% yoy), on higher social transfers.
Looking at the external sector, exports grew a meager 3.5% in the first quarter, a notable slowdown from the previous quarter’s 8.3% rise. The deceleration was mainly caused by weakening demand from the European Union. Import growth also decelerated, to 3.8%, in Q1 (Q4: +9.7% yoy), despite solid domestic demand. Consequently, the external sector made a null contribution to overall growth in the first quarter.
The economy should expand robustly this year, underpinned by strong domestic demand and healthy foreign orders. Consumer spending is expected to grow significantly as wages continue to rise on intensified labor shortages, while fixed investment will be fueled by rising inflows of EU funds and favorable financing conditions. The government’s fiscal stance is also expected to remain supportive of growth, although it will remain prudent overall.
Hungary GDP Forecast
Met the why particular Consensus Forecast panelists expect the economy to expand 3.8% in 2018, which is up 0.1 percentage points from last month’s projection. For 2019, the panel expects growth of 3.1%.
Hungary - GDP per capita (USD) Data
|GDP per capita (USD)||13,670||14,217||12,572||12,823||14,271|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||3.43||0.0 %||Jul 13|
|Exchange Rate||276.3||-0.68 %||Jul 13|
|Stock Market||35,642||0.04 %||Jul 13|
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July 12, 2018
According to revised data released by the Hungarian Central Statistical Office (KSH) on 12 July, industrial output rose a working-day adjusted 3.8% year-on-year in May.
July 12, 2018
Consumer prices rose 0.3% month-on-month in June, coming in below the 0.6% increase observed in May.
July 6, 2018
According to preliminary data released by the Hungarian Central Statistical Office (KSH) on 6 July, industrial output rose a working-day adjusted 3.8% year-on-year in May, coming in above the 2.9% increase recorded in April. In month-on-month seasonally- and working-day adjusted terms, industrial production jumped 1.9% in May, considerably above the 0.2% rise recorded in April. Meanwhile, annual average growth in industrial production inched down from 4.9% in April to 4.8% in May. A second estimate will be released on 7 August.
Hungary: Economic sentiment hits new record-high in June on stronger consumer and business confidence
June 25, 2018
The GKI economic sentiment index, a composite indicator, increased to a record-high 9.8 points in June from 8.3 points in May, reflecting an improvement in both business and consumer confidence. The business sentiment component of the index improved in June, rising to 15.3 from 13.8 points in May, amid increased optimism in the services, trade and construction sectors.
June 19, 2018
At its latest monetary policy meeting held on 19 June, the Monetary Council of the Hungarian National Bank (MNB) decided to keep the base rate at its current record low of 0.90%, while also holding steady all other monetary policy instruments.