According to raw data, Hungary's gross domestic product increased by 8.2 percent in the first quarter, and by eight percent based on seasonally and calendar-adjusted and balanced data compared to the same period of the previous year. Almost all branches of the national economy contributed to the growth.
Compared to the previous quarter - according to seasonally and calendar-adjusted and balanced data - the performance of the economy increased by 2.1 percent, the Central Statistical Office (KSH) announced.
Within industry, the expansion of food and beverage production, petroleum processing, and electrical equipment production, and of market services mainly trade, accommodation services, hospitality, as well as transportation and warehousing, was significant.
- The growth of the economy was particularly dynamic, significantly exceeding expectations. Not only was the annual index outstanding, but the quarter-on-quarter expansion was also favorable, i.e. the increase in economic performance was not only due to the long-term effects. The expansion rests on a broad base, the majority of branches of the national economy contributed to it, but the biggest role was played by industry and market services.
In the latter, retail trade, which was driven by wage increases and government transfers, as well as tourism, which started from a low base due to last year's restrictions related to the coronavirus, and the transport sector played a role - Gábor Regős, head of the macroeconomic business branch of Századvég Konjunktúrakutató, commented on the data.
He indicated: within the industry, KSH singled out the food industry and petroleum processing - in the latter, Mol's favorable performance played a role, which could be partially justified by the growing volume and partially by the relatively cheap purchase price. - In terms of detailed data, it will be interesting to see exactly how the investments and the foreign trade balance affected the economic performance. Therefore, the impact of the war is not yet felt in the first quarter data, he explained.
- Due to the more favorable growth than expected, the rate of annual expansion may also be higher, exceeding five percent. In the following quarters, it will become clear what effect the war and inflation have on economic performance, as well as how much the damage caused by them will hold it back. At the same time, based on the favorable data, it can be concluded that the revenues of the budget may develop more favorably than expected, which helps to achieve this year's deficit target, he added.
- Thanks to the robust performance, domestic GDP growth was able to remain at the top of the Union, and the catch-up can continue this year. The expansion exceeds the pre-epidemic level by almost six percent, said Gergely Suppan, the lead analyst of Magyar Bankholding. According to him, a slowdown can already be expected in the coming quarters, partly due to base effects and partly due to the negative effects of the war. To this he added:
On a quarterly basis, growth may also decrease significantly, but we do not expect a decline in the basic case.
Source: Hungarian Nation
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