More Economic Challenges but Catching-Up in 2022

The economic challenges intensified last year, but Hungary continued to catch up with the EU average, with GDP growth of 4.6%, the Hungarian Central Statistical Office (KSH) said in its publication ‘Hungary 2022’, MTI reports.

According to the summary published on the KSH website on Tuesday, geopolitical tensions have worsened energy security, increased inflation and the government sector deficit. The unfavorable conditions have reduced the development activity of public sector organizations, while businesses and households have increased, and total investment has returned to an annual peak.

Agriculture suffered heavy losses from the drought, but all other sectors contributed to growth in 2022. Industrial production benefited from a recovery in vehicle production and an expansion in battery production. Labor market developments were also positive, with employment remaining high, contributing to an increase in retail sales, which was only held back in the last quarter by rising inflation, they said.

In addition to the state of the economy, the KSH publication also looks at social developments. According to last year's data, population decline has moderated, and although the total fertility rate, which is an indicator of the propensity to have children, fell for the first time since 2012, it remains above 1.5. The number of births also fell compared to 2021, but international migration surpluses curbed the population decline, they added.