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15th August, 2019

GDP growth at 5% in Q2

Hungary’s GDP was 4.9% higher in the second quarter than in the same period of 2018, and was up 5.1% according to seasonally and workday adjusted figures, the Central Statistics Office announced as it released its first estimate on Wednesday.

Analysts on average had forecast 4.7% growth for the second quarter.

The final figure will be announced on August 30.

Finance Minister Mihaly Varga said the 5.1% figure is the highest in the whole EU in the second quarter.

He said the growth rate would only be 3.5% without government measures.

Growth will remain high in the second half, and in a modest forecast the 2019 GDP growth can be 4.3-4.4%, above the 4% target, he added.

Analyst Peter Virovacz of ING Bank said external risks, such as a global trade war, the struggling eurozone economy and Brexit, are expected to start to show in the domestic economy in the second half of the year.

He nevertheless forecast average GDP growth for 2019 at 4.5%.

Not only is domestic consumption rising, but foreign direct investment is also expanding rapidly, said analyst Gergely Suppan of Takarekbank. (ksh.hu; napi.hu; magyarhirlap.hu; portfolio.hu; hvg.hu; index.hu; KR)

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