Hungary’s gross domestic product increased by 6.5% in the second quarter of 2022 compared to the corresponding period of the previous year. Compared to the previous quarter, economic performance rose by 1.1%. In the first half of the year, GDP was 7.3% higher than in the corresponding period of the previous year. The data is surprising as analysts had expected an increase of just 6.1%.
Almost all sectors contributed to the increase, mostly industry and market services. Within industry, growth was particularly strong in food products, beverages and electrical equipment, while among market services, the strongest growth was in accommodation and food service, as well as transportation and logistics. However, growth was held back by a significant decline in agriculture.
Towards the end of the second quarter there were already signs of a slowdown in economic performance. The slowdown is clearly visible, as economic growth was only 1.1% in the second quarter after 2.1% in the previous quarter. This trend could change as a result of inflation, interest rate hikes to curb inflation, global recession concerns, negative effects of drought and lengthy negotiations between the Hungarian government and the EU in the third strengthen quarter.