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Sep 06, 2017

Hungary's economy grew by 3.2 percent year-on-year

The official government projection for GDP growth for 2017 is 4.1 percent

Hungary’s economy has grown by an annual 3.2 percent in Q2 of 2017, the Central Statistical Office (KSH) has said.

According to official data, the growth was driven by an increase in market-based services, the construction sector and industry.

MTI reports that services added 1.5 percentage points to growth, the construction sector 0.8 percentage points and industry 0.7 percentage point.

ING analyst Péter Virovácz said that GDP growth was expected to speed up in the second half of 2017. "If consumption reflects the changes in the labor market and industrial growth gains momentum, July-December data may surpass 4 percent," he said.

The official government projection for GDP growth for 2017 is 4.1 percent. KSH said the unadjusted year-on-year and quarter-on-quarter GDP growth figures were unchanged from the first reading released on August 16, but the adjusted year-on-year figure was revised down from a preliminary 3.6 percent.