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Aug 16, 2019

Record Hungarian GDP growth far higher than EU neighbors

Hungarian GDP growth has by far surpassed the rates measured in Romania (4.4 percent), in Slovakia (1.9 percent), and in the Czech Republic (2.7 percent).

Péter Virovácz, a leading analyst at ING Bank, has highlighted that the Hungarian economy has shown growth on an unprecedented scale in the second quarter of this year, the highest recorded since 2004.

In an analysis published yesterday by Mandiner, analyst Gergely Suppan lists the following driving factors behind the growth: industrial development, the construction industry, and market-based services.

The biggest threat to the current success lies in external factors: the possibility of trade wars, the plummeting German industry and the uncertainties triggered by Brexit are bound to have an impact on the Hungarian economy. However, Suppan emphasizes that despite the negative factors, the Hungarian economy is only expected to experience further improvements.

“The family protection plan and the economic action plan will take effect in the third and fourth quarters of the year, counter-balancing the negative impacts of the broader, European environment. While the scale of growth might become moderate within this period, the GDP growth is expected to reach 4.8 percent on the annual average," he said.

Suppan also emphasized that Hungarian GDP growth has by far surpassed the rates measured in Romania (4.4 percent), in Slovakia (1.9 percent), and in the Czech Republic (2.7 percent).

Photo credit: bbj.hu