Hungary hit by another blow: Economy decline continues in early 2025

Hungary’s GDP inched up 0.1pc in the second quarter compared to the same period a year earlier, a first reading of data released by the Central Statistics Office (KSH) on Wednesday shows.

Adjusted for seasonal and calendar year effects, GDP rose 0.2pc KSH said services, especially the ICT sector, had a positive impact on GDP, while performances of the industrial and agriculture sectors weighed. In a quarter-on-quarter comparison, GDP rose a seasonally- and calendar year-adjusted 0.4pc.

In the first half, GDP stagnated, according to unadjusted data, and slipped 0.1pc when adjusted for seasonal and calendar year effects.

KSH will publish a second reading of the data on 2 September.

In a statement after the release of the fresh data, the National Economy Ministry highlighted external factors, such as the tariffs war and the weak performance of the German economy, on Hungary’s Q2 GDP. While the farm sector has been hit by drought, branches of the service sector grew, supported by a pickup in consumption, and the construction sector is on the upturn, it added.

• Usually leading private equity firms are looking for opportunities in such periods to optimize their returns

The ministry augured year-on-year GDP growth of around 1-2pc in Q3 and Q4 and put full-year growth at 1pc. The pace of growth is “realistic” as long as the war in Ukraine continues, the ministry said. If there is peace, growth will accelerate, it added.