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GDP up by 1.1 percent in Q1

Hungary's GDP rose by an annual 1.1 percent in the first quarter, the Central Statistical Office (KSH) said in a first reading of data on Tuesday. Adjusted for calendar year effects, GDP rose by 1.7 percent.

In a quarter-on-quarter comparison, GDP increased by a seasonally- and calendar year-adjusted 0.8 percent.

KSH said GDP was boosted the most by market services, especially the real estate and ICT segments, while the industrial sector weighed on headline growth.

Commenting on the fresh data, Finance Minister Mihaly Varga said growth was supported by record high employment, an increase in real wages, rebounding consumption and stronger performances in the construction and tourism sectors. Full-year GDP growth could reach 2.5 percent, he added.

He said Hungary’s GDP growth was an “important accomplishment” in the context of the impact of the war in Ukraine, the conflict in the Middle East and the weak German economy. He added that growth was being “rebuilt with a strengthening of the balance”, noting a recent government decision to postpone 675 billion forints in state investments in the interest of reaching this year’s 4.5 percent-of-GDP fiscal deficit target.

“The government is committed to achieving the deficit target: it is following fiscal developments closely and will take action if necessary,” he added.

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