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Jun 08, 2017

Hungary’s GDP growth rises by more than twice the European average at 4.2%

The ministry for National Economy said Hungary's growth figure was the second highest in the past 10 years, and the economy is on a “steady and balanced path”

Hungary’s GDP growth has increased by 4.2 percent in the first quarter of 2017, more than twice the European average, it has been revealed.

Péter Benő Banai, the state secretary for budget from the Ministry for National Economy, said the construction and services sectors rose significantly while the driving forces behind the increase were consumption and investments.

The ministry added that Hungary's growth figure was the second highest in the past 10 years, and the economy is on a “steady and balanced path”.

Banai added that the government’s measures to boost competitiveness taken in the spring, including tax cuts and wage agreements with unions, could further support growth in the long-term.

It is “extremely important” that the government “protect Hungary’s independence in terms of economic, tax, and employment policy,” the ministry said.

The high growth figure was mostly supported by investments, the ministry said, adding that home construction expanded by some 50 percent, thanks to a government scheme to help young couples buy their first home.