Budapest, October 30 (.) – The Hungarian economy is in a technical recession, with gross domestic product (GDP) declining year-on-year for two consecutive quarters: 0.7% in the past three months and 0.2% in the previous year. The Central Statistics Office (KSH) reported this quarter on Tuesday of this week.
According to KSH, the rate of decline in the third quarter of this year was 0.7% compared to the same period last year, and 0.7% compared to the previous three months.
The agency said the year-on-year decline in GDP was due to sectors such as agriculture, industry and construction, which account for almost a third of the national economy.
The published results surprised analysts who had predicted a decline of 0.2%, economic portal Portfolio reported.
This headline shows that the Hungarian economy was only able to grow in 3 out of 9 semesters registered since the second half of 2022, i.e. by 0.1% and 1.3% in the first and second half of 2023, respectively, and by only 1.3% in the first half of 2023. It reminds me of what I couldn’t do. 2024 (0.4%).
The Ministry of National Economy said on Wednesday that the fall in GDP was “due to a decline in industry, construction and agriculture, but mainly due to the poor performance of industry, which is linked to the prolonged crisis in the German economy.” said.
The government’s goal is for the Hungarian economy to achieve economic growth of over 3% in 2025, the ministry statement added.
Hungary recorded its longest economic recession since 1995, from the last two quarters of 2022 to the first two quarters of 2023.
