The economy grew at a faster pace than expected in the fourth quarter, rising 3.1% year-on-year, according to calendar-adjusted figures, above the 2.6% estimate. For 2015, GDP was up 2.9%, well above the EU average.
The manufacturing sectors and especially the car industry continued to be the engine of growth, but almost all sectors registered growth, except for agriculture, the KSH said. The acceleration of the disbursement of EU funds and depressed oil prices fuelled domestic demand, industrial sectors and exports, the National Economy Ministry said.
The structure of growth has become more balanced leading to a healthier contraction of the economy in line with the government's strategy, which shows that reforms are working, they added. To offset the negative impact from the slowdown of EU funds, the government decided to pay out HUF 2 trillion to simulate the economy this year.
The launch of the home subsididy scheme and tax cuts alongside measures to stimulate lending could further increase potential growth. Besides industrial growth and exports, household consumption will be a key for maintaining the strong growth rate, however GDP expansion is likely to slow from near 3% to below 2.5%, according to analysts.
