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Hungary's GDP up by 3.4 pct in Q1

Xinhua, May 13, 2015 Adjust font size:

Hungary's gross domestic product (GDP) was up by 3.4 percent year-on-year in the first quarter (Q1) of 2015, the Hungarian Central Statistics Office reported on Wednesday.

A statement issued by the Ministry for National Economy said industry, and in particular the motor vehicle industry, was the driving force of the growth. Overall industrial growth was up by 8.0 percent year-on-year.

The building industry was another major contributor to the growth, having climbed by 9.2 percent year-on-year, thanks to increased credit opportunities for small and medium-sized enterprises (SMEs) and European Union grants.

The ministry also emphasized the rise in employment, stating that in Q1 of 2015 there were 80,000 more people at work than a year ago, most jobs having been created in the private sector.

National Economy Minister Mihaly Varga told a news conference that Hungary had been in growth mode for the past eight quarters. In the meantime, it had sustained its internal and external equilibrium, he said, underlining that the economy was not relying on credit to enhance its growth.

Varga predicted the economy would continue growing, and that it would be up by at least 3 percent and possibly more by year-end. The budget deficit, which was down to 2.6 percent of GDP in 2014, could drop even lower, to 2.4 percent, in 2015, he said. Endit