Hungary Q1 GDP rises by 5.3 pc

Hungary’s first-quarter GDP grew by an annual 5.3 percent, the Central Statistical Office (KSH) said in the first reading of data on Wednesday.

The rate was above the 5.1 percent estimate by analysts polled by business news site Portfolio.

Analysts told MTI

a gradual slowdown was expected in the coming quarters.

As we said on Tuesday, leading German business newspaper Handelsblatt wrote in a Sunday analysis that German automotive industry is facing significant problems so giants like BMW and Daimler Mercedes will probably start to cut their budget in Hungary by postponing or even cancelling some of their planned investments. – German press: BMW and Mercedes investments in danger in Hungary?

Gergely Suppán of Takarékbank noted that output, especially of the construction industry, had sped up at a fast clip and the acceleration of retail sales showed consumption was still strong. The decline in the foreign trade balance weakened economic output to a lesser extent due to peppy industrial production.

Péter Virovácz of ING Bank said Hungary’s economy was still performing well and the fresh data put Hungary at the top end of EU performers. Still, growth could lose its momentum for the full year of 2019, he added.

Gábor Regős of the Századvég economic research institute said

Hungarian economic expansion had taken place within a less positive external environment, especially when it came to Hungary’s main export destination, Germany. Based on today’s data, he forecast growth of just above 4 percent for the full year.