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Hungary's GDP growth increases by 3.2 percent in Q2

The rate of economic expansion in Q2 was in line with expectations, the ministry for National Economy said

Hungary’s annual GDP growth has increased by 3.2 percent in Q2, the Central Statistical Office (KSH) has revealed.

According to MTI, the numbers are down from 4.2 percent in Q1, and market-based services contributed the most growth in Q2.

The rate of economic expansion in Q2 was in line with expectations, the ministry for National Economy said.

In future, the growth rate is expected to pick up further on the back of the effects of European Union funding projects, the government’s home-creation scheme, the deal over six-year wage hikes and tax cuts, the ministry added.

According to analysts, during the same period last year, the economy grew at its strongest pace for a long time, so the slight slowdown could be expected, the statement said.

For the full year of 2017, the government’s target of GDP growth of 4.1 percent appears achievable, the statement added.

Growth is sustainable and the country’s external financing capacity continues to be “outstanding”, while its external debt is on a declining course, the ministry said.