The Hungarian economy advanced 5.1 percent year-on-year in the fourth quarter of 2018, the same pace as in the previous period and slightly above a preliminary estimate of 5.0 percent. It remained the highest growth rate since the third quarter of 2014, as social transfers in kind from government rose 1.0 percent (vs 0.2 percent in Q3). Household consumption slowed to 5.0 percent, after expanding 5.4 percent in the prior period and fixed investment grew 17.2 percent (20 percent in Q3). Meantime, net external demand contributed negatively to the GDP as exports increased 5.6 percent (vs 2.3 percent) and imports rose at a faster 8.2 percent (vs 6.2 percent). On a seasonally adjusted quarterly basis, the economy expanded 1 percent, down from an upwardly revised 1.4 percent in the previous period. Considering full 2018, the economy grew 4.9 percent compared to a year earlier. GDP Annual Growth Rate in Hungary averaged 2.48 percent from 1996 until 2018, 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 3.60 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.