Hungary Q1 GDP Growth Confirmed at 1.7%

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.

Hungary’s gross domestic product expanded by 1.7% year-on-year in the first quarter of 2026, following a 0.8% growth in the previous three-month period, according to preliminary estimates. This marked the fastest growth since the third quarter of 2022, driven largely by strong performance in the services sector, particularly in professional, scientific, technical, and administrative activities. In addition, the industrial sector contributed positively to overall economic growth. On a seasonally adjusted quarterly basis, GDP grew by 0.8% in Q1 2026, up from a 0.2% increase in the preceding quarter.

Hungary’s economy grew by 0.8% year-on-year in the final quarter of 2025, exceeding both the preliminary estimates and the previous quarter’s upwardly revised 0.7% expansion. The latest figure also marked the strongest growth since the second quarter of 2024, mainly driven by strong performances in the construction (5.1% vs 3.3% in Q3) and services sector (1% vs 1.7%). Output in services particularly increased for financial and insurance activities (5.9% vs 5.3%) and arts, entertainment, leisure, and other services (4.6% vs -0.1%). On the expenditure side, household consumption, the largest component of actual consumption, continued to increase (2.7% vs 2.3%), while gross fixed capital formation (-1% vs -2.1%) declined less. On a seasonally adjusted quarterly basis, the economy advanced by 0.2% in the fourth quarter, after showing no growth in preceding period. In 2025, the GDP exceeded the previous year by 0.4% in raw terms and 0.3% on a seasonally and calendar-adjusted basis.