The Hungarian economy advanced 5.3 percent year-on-year in the first quarter of 2019, following a 5.1 percent rise in the previous period and in line with preliminary estimate. It was the highest growth rate since the third quarter of 2004, as government consumption rebounded (2.1 percent vs -7.0 percent in Q4) and household consumption increased faster (4.8 percent vs 4.3 percent) while gross fixed capital formation rose sharply (23.4 percent vs 17.2 percent). Net foreign demand contributed positively to GDP, as exports went up 7.7 percent (from 5.6 percent in Q4) while imports increased at a softer 6.7 percent (from 8.2 percent in Q4). On a seasonally adjusted quarterly basis, the economy expanded 1.5 percent, accelerating from a 1.1 percent rise in the previous period. GDP Annual Growth Rate in Hungary averaged 2.51 percent from 1996 until 2019, reaching an all time high of 5.60 percent in the first quarter of 2000 and a record low of -7.90 percent in the second quarter of 2009.
GDP Annual Growth Rate in Hungary is expected to be 4.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Hungary to stand at 2.30 in 12 months time. In the long-term, the Hungary GDP Annual Growth Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.