Hungary's GDP up by 2.6 pct in Q2

Hungary's gross domestic product (GDP) rose by 2.6 percent by volume in the second quarter (Q2) of 2016 and by 1.9 percent in the first half of 2016 when compared to the same period of 2015, the Central Statistical Office (KSH) reported on Tuesday.

When adjusted for seasonal and calendar effects the rise was 1.8 percent year on year and 1.0 percent compared to the first quarter (Q1) of 2016.

These numbers are slightly lower than the 2.2 and 1.1 percents estimated in August, according to the KSH report.

Much of the growth was the outcome of improvements in market services, industry, and agriculture.

The gross value of services was up by 3.3 percent year on year.

Within that commerce and accommodations were up by 7.7 percent. Public administration, education, and health care, lumped together, rose by 0.9 percent. Banking and insurance services, however, were down by 1.6 percent year on year, primarily due to declines in the fees for money management KSH wrote.

Information technology (IT), as a separate economic sector, was up by 4.6 percent year on year.

Industry was up by 3.9 percent year on year. Within that, manufacturing rose by 3.7 percent but the building industry was down by 23.6 percent.

Agricultural growth shot up by 13.4 percent year on year.

Overall consumption was 4.4 percent higher year on year, while actual household consumption was up by 4.6 percent.

The volume of government benefits in kind within that rose by 2.1 percent.

On the down side, gross fixed asset accumulation sank by 20 percent in Q2. Overall gross accumulation dropped by 13 percent year on year. According to KSH, the decline occurred because projects financed by the European Union had been completed.

International trade increased by 2.4 percent year on year. Endit