Hungary's GDP Up by 1.5% Annually in Q2 This Year

Hungary's GDP was boosted the most by the construction sector and real estate transactions, as well as by the balance of product taxes and subsidies, according to a report by the country's Central Statistical Office (KSH).

The Central Statistical Office said Hungary's gross domestic product grew by an annual 1.5% in the second quarter of 2024. Adjusted for calendar-year effects, GDP grew by 1.3%. Quarter on quarter, GDP edged down a seasonally and calendar year-adjusted 0.2%. KSH said GDP was boosted the most by the construction sector and real estate transactions, as well as by the balance of product taxes and subsidies.

Commenting on the data, Mihály Varga, the finance minister, said that the Hungarian economy continued to expand, and “growth prospects give cause for optimism”. In a video posted on Facebook, he said fresh data were positive despite “unfavorable external conditions” such as the war in Ukraine and economic malaise in the country’s main export markets in Europe, which, he said, was a drag on industrial output.

The finance minister noted recent government measures to consolidate the budget. “An additional HUF 1,000 billion (EUR 2.5bn) in the budget has increased room for manoeuver, so the growth outlook is getting more stable despite external difficulties,” Varga said. Meanwhile, thanks to a successful campaign to curb inflation and hike pay, real wages have increased by 10% on average, he added.

An uptick in consumption reflects increasing confidence in the economic outlook, coupled with economic growth projections by the IMF and European Commission putting Hungary among next year’s frontrunners. International credit rating agencies have also affirmed Hungary’s growth outlook, Varga said, adding that the government will carry on working to maintain fiscal balance while keeping the economy on a growth path.