Hungarian economy grows - growth slowing

Hungary’s gross domestic product rose by 0.5% quarter on quarter in the July-September period of 2015, the Central Statistical Office (KSH) reported on Friday. According to figures adjusted for calendar effects, growth slowed to 2.3% year on year.

The Hungarian economy lost some steam in the third quarter of 2015 as GDP growth slowed to 2.3% year on year from 2.7%. Growth remained at +0.5% in quarterly comparison, but -  as the finacial website portfolio.hu remarks - it was a bit stronger than in the 4th quarter of 2014 (+0.7%).

Its analysts say the market was expecting growth to subside, primarily because the list of the key drags no longer consists only of agriculture but - based on the monthly volume data - also of a contracting construction sector and stagnating industry.

According to a brief comment by the stats office, "the increase was basically due to growths measured in the performance of industry as well as wholesale and retail trade and accommodation and food service activities."

Portfolio.hu remarks that this could be misleading in a sense that whereas Hungary’s industrial production still grows on a yr/yr basis, it already fared weaker in the last quarter. This is underpinned by KSH statistician Zsuzsanna Boros’ remark. She told Reuters that growth slowed in the manufacturing industry in annual terms, halted in constructions, while agricultural output contracted.