Hungarian GDP Down by 2.1% Year-On-Year

The volume of gross domestic product lessened by 2.1% in Hungary in the first quarter of 2021 compared to the corresponding period of the previous year, the country's Central statistical Office reports.

According to seasonally and calendar adjusted and reconciled data, the performance of the economy became 2.0% higher than in the previous quarter and 1.6% lower than in the corresponding quarter of the previous year.

As for the details, the performance of industry increased by 3.4%, within which that of manufacturing by 4.1% compared to the same period of the previous year. Among manufacturing branches, the largest contributor to the growth of industry was the increase in the manufacture of electrical equipment. The value added of construction lessened by 2.4% and that of agriculture grew by 2.5% compared to the corresponding period of the previous year.

The gross value added of services decreased by 3.5% in total. The highest falls were in accommodation and food service activities (–47.7%) as well as transportation and storage (–11.1%). The performance of wholesale and retail trade moderated by 0.3%. The value added of professional, scientific, technical and administrative activities went down by 5.4% and that of arts, entertainment and other services by 9.4%. The performance of financial and insurance activities increased by 3.4%. The value added of public administration became 2.5% higher and that of education and of health 3.8% and 2.3% lower, respectively.

Services contributed by 2.1 percentage points and construction by 0.1 percentage point to the 2.1% decrease of gross domestic product in the 1st quarter of 2021. Within services, GDP was lowered the most (by 0.8 percentage point) by wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as accommodation and food service activities. Industry improved the economic performance by 0.7 percentage point.