Hungarian economy likely to have grown 3.4 pct in Q1 2017

The Hungarian economy has gained momentum in the March quarter, owing to the favourable internal and external developments. The economic growth has become more widespread, since gross fixed capital formation could have recovered, based on the huge construction output volumes seen in the first quarter of 2017.

The high frequency external trade data came in as a mixed bag, as exports were led by the strengthening of the euro area conjuncture, while imports were stimulated by the unusually cold weather, the rebound in investments and raising household demand. Moreover, apart from the growth-spurring factors, the low base also added to the annual growth figure’s strength. According to an ERSTE research report, the annual GDP growth rate is likely to have come in at 3.4 percent in the first quarter of this year.