According to the latest report by the Hungarian Central Statistical Office, in Q1 2013 Hungarian GDP – in line with prior estimates – increased by 0.7 percent in comparison to the previous quarter, which figure is the result of outstanding, 27.6 percent growth in agricultural output and the 1.5 percent expansion of the construction sector.

Compared to the corresponding period of the previous year, unadjusted data, and seasonally and calendar-adjusted data show that the Hungarian economy contracted by 0.9 percent and 0.3 percent, respectively.

On the basis of detailed statistics, agricultural and construction sector output increased on the production side compared to the same period of last year. Added value by the agricultural sector – after a low base last year – was up by 12.3 percent, thus adding 0.3 percent to GDP growth.

Construction sector performance was 4.2 percent higher, which constitutes a 0.1 percent contribution to GDP expansion. The gross value of industrial and manufacturing sector output decreased by 3.2 percent and 2.5 percent, respectively, compared to the same period last year.

Within the manufacturing sector, motor vehicle production – driven by exports – registered the largest growth. The total performance of the services sector was down by 0.8 percent in comparison to the first quarter of 2012.

On the expenditure side, household consumption decreased by 0.6 percent in Q1 2013 compared to the level of one year ago, while the contraction regarding gross fixed capital formation totalled 5.6 percent. Exports and imports were up by 1.3 percent and 0.9 percent, respectively. Net exports added 0.4 percent to GDP growth.

According to revised Eurostat data – in line with prior forecasts – in the Euro-zone and the EU 27, negative growth of 0.2 percent and 0.1 percent, respectively, was recorded in the first quarter of 2013 compared to the previous quarter.  Year-on-year, the contraction was 1.1 percent in the Euro-zone and 0.7 percent within the European Union.

In Q1 2013, in light of currently available data, Hungary’s quarter-on-quarter economic growth was the highest after that of Lithuania and Latvia, while the largest decline was registered in the Czech Republic and Estonia.

(Ministry for National Economy)