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KSH: Hungary’s second-quarter GDP grew by 17.9 percent year-on-year

Hungary’s second-quarter GDP grew by 17.9 percent year-on-year, after a double-digit decline in the base period.

The Central Statistical Office (KSH) has confirmed that Hungary’s second-quarter GDP grew by 17.9 percent year-on-year, after a double-digit decline in the base period. Adjusted for seasonal and calendar year effects, GDP climbed 17.7 percent.

In a quarter-on-quarter comparison, GDP rose a seasonally and calendar year-adjusted 2.7 percent. KSH noted that unadjusted GDP was 2.2 percent higher than in Q2 2019, before the start of the pandemic. On the production side, industry contributed 7.3 percent points to the Q2 headline increase, services 7.0 percentage points and the construction sector 0.9 percentage point. Within services, commerce, vehicle repair and the commercial accommodations and catering sectors accounted for 2.2 percentage points of the increase. Output of industry jumped 36.9 percent during the period, while output of services climbed 12.4 percent and construction output increased by 18.4 percent.

Within services, output of the commercial accommodations and catering segment rose by 71.5 percent. On the expenditure side, final consumption contributed 6.0 percentage points and gross capital formation 5.4 percent points to the headline increase. The trade balance lifted GDP by 6.5 percentage points. Final consumption increased by 8.1 percent, while gross capital formation rose by 8.3 percent during the period. KSH noted that in a quarter-on-quarter comparison, gross added value rose by 2.8 percent in the industrial sector, 3.6 percent in construction and 1.8 percent for services. On the expenditure side, household consumption increased by 1.7 percent, while public consumption fell 2.3 percent. Gross fixed capital formation grew 3.2 percent.