Hungary GDP Stalled in Q1

Hungary’s economy expanded by 1.7% year-on-year in the second quarter of 2026, in line with preliminary estimates and the same pace as in the previous quarter. The latest reading also remained the strongest economic growth since the second quarter of 2024, mainly driven by strong performances in the industry (3.7% vs 0.8% in Q1) and services sector (1.9% vs 2.3%), with professional, scientific, technical and administrative activities contributing the most. In contrast, output declined for construction (-0.3% vs -4.3%), as well as for agriculture (-12.4% vs 1.9%) due to severe drought. On the expenditure side, household consumption, the largest component of actual consumption, continued to increase (4.5% vs 5.5%), while gross fixed capital formation (-6.3% vs -0.1%) declined faster. On a seasonally adjusted quarterly basis, the economy grew by 0.5% in Q2, exceeding initial estimates for a 0.4% expansion but slowing from a 0.8% growth in the preceding period.

Hungary’s gross domestic product expanded by 1.7% year-on-year in the second quarter of 2026, the same pace as in the previous three-month period, according to preliminary estimates. The latest reading fell short of market expectations for a 1.9% expansion but remained the strongest growth since the second quarter of 2024, driven largely by robust performance in the services sector, particularly in professional, scientific, technical, and administrative activities. The industrial sector also continued to contribute positively to the overall economic growth. On a seasonally adjusted quarterly basis, the economy grew by just 0.4% in Q2 2026, slowing from a 0.8% expansion in the preceding period.

Hungary’s economy expanded 1.7% year-on-year in the first quarter of 2026, following a 0.8% growth in the previous two quarters and matching preliminary estimates. This marked the strongest economic expansion since the second quarter of 2024, mainly driven by a rebound in performances in agriculture (1.9% vs -1.7%), industry (0.8% vs -2.1%), and manufacturing sector (1.3% vs -1.1%). Additionally, output increased in commerce (2.3% vs 2.1%), accommodation and catering services (2.3% vs 2%), information and communication (2.4% vs 0.4%), and education (3% vs 2.4%). On the expenditure approach, household consumption, the largest component of actual consumption, further recorded gains (5.5% vs 2.9%), while gross fixed capital formation (-0.1% vs -0.2%) declined less. On a seasonally adjusted quarterly basis, the economy advanced 0.8% in Q1, following a 0.2% increase in the preceding period.