Hungarian economic growth likely to have accelerated in Q2, expected to be stronger during 2017

The Hungarian economic growth could have retained its momentum from the first quarter of 2017, when growth expanded to 4.2 percent year-on-year and 1.3 percent quarter-on-quarter SWDA. Meanwhile, similar to the first quarter , the production side is expected to have been strengthened by industrial production, construction and services, while agriculture could have stayed a drag on the growth in the second quarter of this year, noted Erste Group Research in a research report.

The demand side was possibly helped by the increasing internal demand, including both household consumption and gross fixed capital formation, while the contribution of next exports continues to be the subject of uncertainty.

“We see the annual growth rate at 4 percent and quarterly at 1.7 percent in 2Q17. Overall, economic activity will most likely be stronger during the whole year at 3.7 percent in 2017 vs. 2 percent in 2016”, added Ertse Group Research.

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