Hungarian economy likely to have grown 4.2 pct in Q3 2018, service sector to have driven growth

The Hungarian economic growth data is set to be released this week. The industrial production figure for the September quarter implies that this sector is unlikely to have mainly driven the economic growth in the third quarter. Industry had a softer quarterly volume performance in the third quarter as compared to the prior quarter, so it might have contributed about 0.5 percentage points to the economic growth, noted KBC Market Research in a report.

The construction continued to be elevated so it might have stimulated the economic growth by about 0.8 percentage points, while by far the biggest contributor to the growth might have been service sector, which is expected to have contributed about 2.5 percentage points.

“We expect that the economy might grow about 4.2 percent YoY in 3Q18”, added KBC Market Research.