Hungary hit by another blow: Economy decline continues in early 2025

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Illustration. Photo: depositphotos.com

Hungary’s GDP inched up 0.1pc in the second quarter compared to the same period a year earlier, a first reading of data released by the Central Statistics Office (KSH) on Wednesday shows.

Adjusted for seasonal and calendar year effects, GDP rose 0.2pc KSH said services, especially the ICT sector, had a positive impact on GDP, while performances of the industrial and agriculture sectors weighed. In a quarter-on-quarter comparison, GDP rose a seasonally- and calendar year-adjusted 0.4pc.

In the first half, GDP stagnated, according to unadjusted data, and slipped 0.1pc when adjusted for seasonal and calendar year effects.

KSH will publish a second reading of the data on 2 September.

In a statement after the release of the fresh data, the National Economy Ministry highlighted external factors, such as the tariffs war and the weak performance of the German economy, on Hungary’s Q2 GDP. While the farm sector has been hit by drought, branches of the service sector grew, supported by a pickup in consumption, and the construction sector is on the upturn, it added.

The ministry augured year-on-year GDP growth of around 1-2pc in Q3 and Q4 and put full-year growth at 1pc. The pace of growth is “realistic” as long as the war in Ukraine continues, the ministry said. If there is peace, growth will accelerate, it added.

Hungary trade surplus reaches EUR 978m in June

Hungary had a EUR 978m trade surplus in June, data released by KSH on Wednesday show. Exports edged up 0.1pc year-on-year to EUR 12.273bn. Imports increased 1.4pc to EUR 11.295bn.

Trade with other European Union member states accounted for 75pc of Hungary’s exports and 71pc of its imports during the month. Hungary’s exports to the rest of the world increased 7.1pc, while imports from those countries expanded 8.8pc, KSH noted.

Hungary’s terms of trade improved 5.3pc during the period as the forint weakened 1.9pc against the euro and strengthened 4.8pc to the dollar. For the period January-June, Hungary’s trade surplus reached EUR 6.813bn. Exports increased 1.5pc to EUR 74.452bn and imports rose 3.2pc to to EUR 67.639bn.

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