Hungary’s gross domestic product (GDP) increased by 6.5% in the second quarter compared to the same period in the previous year, while it increased by 1.1% compared to the previous quarter, the Central Statistical Office (KSH) reported on Wednesday based on early estimates.
Analysts had expected lower annual GDP growth of 6.1%, and 0.4% compared to the previous quarter.
Economic performance was 7.3% higher in the first half of the year compared to the same period last year, said KSH. Manufacturing and services were the largest contributors to the growth in the economy.
There are three reasons for Hungary’s high growth, according to HVG: higher spending in the second quarter of the year because of government handouts before the April election; the war in Ukraine has increased prices but has not slowed down manufacturing; and a reversion to the mean after the Covid shutdown in the first half of 2021, primarily in the service sector, which the current numbers are compared to. [Magyar Hang]