- 15 Nov 2018 7:38 AM
- Hungary Matters
Adjusted for seasonal and working-day effects, GDP increased by 5% in the third quarter.
In a statement released by his ministry, Finance Minister Mihály Varga noted that the adjusted Q3 growth rate was two-and-a-half times the European Union average and the second-highest among all member states.
Among the sectors contributing to the increase, he noted the construction and service sectors. He added that rising consumer consumption, boosted by higher wages and the double-digit increase in investments also supports economic growth. Speaking on public television after the data was released, Varga said full-year GDP growth could be between 4.3% and 4.5%. The official government projection is for GDP growth of 4.3%.
ING Bank senior analyst Péter Virovácz said Q3 growth exceeded expectations. He suggested the farm sector or the construction sector could have supported the increase, while exports of services may have countered the weak performance of the industrial sector in the trade balance.
K&H Bank chief analyst Dávid Németh said growth was likely to slow to 4.5 percent in Q4. He put next year’s GDP growth at 3.4 percent, fueled by household consumption and investments.
Takarékbank analyst Gergely Suppan said the farm sector’s contribution to growth may have been boosted by bigger harvests of maize, sunflower and grapes.