Hungary's economy rose 0.9% year-on-year in the first three months, according to the final and detailed estimate of the Central Statistical Office (KSH). The sluggish growth is the result of weaker performance of the vehicle and construction sectors.
The performance of the construction sector fell by 28%, as civil engineering output plunged due to the plunge in new state projects financed by EU funds. Within the GDP, the value added of the agriculture sector fell 3.5%. Services contributed 1.6 percentage points to the 0.9% growth of the gross domestic product in the first quarter of 2016, KSH added.
On a positive note, Hungary's industrial production increased by 5.3% year-on-year in April and 5.4% on a monthly basis, better than most analysts had predicted. This may foreshadow an upswing in growth in the second quarter, analysts said.
