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GDP growth 7.2 percent in Q4, 7.1 percent in full year

Hungarian economic output grew by an annual 7.2 percent in the fourth quarter, bringing full-year growth to 7.1 percent, the Central Statistical Office (KSH) said in a first reading of data on Tuesday.

Adjusted for seasonal and calendar year effects, fourth-quarter GDP rose by 7.1 percent.

Quarter on quarter, the economy expanded by 2.1 percent, driven by market services, KSH said.

KSH noted that Q4 GDP was 4 percent higher than in Q4 2019, before the coronavirus crisis. Full-year GDP increased by 2.1 percent from 2019.

Commenting on the data, Finance Minister Mihaly Varga said last year’s rate of growth was the most rapid in Hungarian economic history.

The government’s policies based on tax cuts and investments in families and companies had been vindicated, Varga told a press conference. The policy prepared the groundwork for a swift rebound after the pandemic economic crisis, he said.

Hungary’s economic performance is outstanding compared with other European Union countries too, he said.

Growth in 2022 is expected at 5.9 percent, he added.

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