According to preliminary data by the Hungarian Central Statistical Office (KSH), in the second quarter of 2013 the Hungarian economy expanded by 0.5 percent in comparison to the corresponding period of the previous year. This figure is in line with analysts’ prior estimates (0.5-0.6 percent). These statistics therefore confirm that Hungary has emerged from the recession in a technical sense.

In light of data adjusted seasonally and for calendar effects, growth amounted to 0.2 percent year-on-year. Compared to the previous quarter, the seasonally and calendar adjusted data signals that Hungary’s Gross Domestic Product increased by 0.1 percent. In the first half of 2013, Hungarian GDP was up by 0.1 percent on the basis of data adjusted for calendar effects.

The KSH report reveals that growth was principally the result of the positive performance of the agricultural and construction sectors, which may show improvement both from an annual and a quarterly aspect. Industrial sector statistics for April-June as a whole paint a positive picture, the performance of the industrial sector – on the output side – is expected to show growth for the second quarter of 2013.

As far as sales are concerned, retail turnover data provide a preliminary indication of the change in household consumption. Accordingly, growth of 3.5 percent and 2.2 percent were registered for April and May 2013, respectively, in comparison to the same period of the previous year. This data indicates that an increase in household consumption can be expected for 2013.

(Ministry for National Economy)