Hungary GDP Stalled in Q1

Hungary’s gross domestic product grew by 0.7% year-on-year in the fourth quarter of 2025, slightly below market forecasts of a 0.8% expansion but higher than the 0.6% growth in the previous three-month period, preliminary estimates showed. The latest figure also marked the fastest growth since the second quarter of 2024, mainly driven by the combined performances in the services sector, particularly financial, insurance, and trade, as well as the construction industry. However, a slump in industry weighed most on overall growth, with industrial output shrinking almost every month over the past three years, except for a brief expansion in February 2024. On a seasonally adjusted quarterly basis, the economy expanded by 0.2% in Q4 2025, after showing no growth in the prior period. For the whole year of 2025, the economy grew a modest 0.4%, down from 0.5% in the previous year.

Hungary’s gross domestic product expanded by 0.6% year-on-year in the third quarter of 2025, matching preliminary estimates and accelerating from a 0.1% growth in the previous three-month period. This marked the strongest growth since the second quarter of 2024, mainly driven by strong performances in the construction (2.6% vs 3.7% in Q2) and services sector (1.5% vs 1.4%), particularly for financial and insurance activities (3.8% vs 0.7%) and accommodation and catering services (3% vs 3.1%). Additionally, contraction moderated in the industry sector (-1.7% vs -2.9%), mainly in manufacturing (-0.8% vs -3.7%). On the expenditure side, household consumption, the largest component of actual consumption, continued to increase (2.6% vs 3.5%). However, net external demand weighed on growth, as exports declined (-0.6% vs -1%) while imports increased (3.9% vs -0.8%). On a seasonally adjusted quarterly basis, the economy stagnated after an upwardly revised 0.5% growth in Q2.

Hungary’s gross domestic product grew by 0.6% year-on-year in the third quarter of 2025, missing market forecasts of a 1% expansion but accelerating from a 0.1% growth in the previous three-month period, preliminary estimates showed. This marked the strongest growth since the second quarter of 2024, mainly driven by the combined performances in the services sector, particularly information and communication. However, the upturn was partially offset by the slowdown in the added value of industry and agriculture. On a seasonally adjusted quarterly basis, the economy stagnated in Q3 2025, following a 0.4% growth in the preceding period.