Hungary’s gross domestic product (GDP) growth rose to an annual 1.6 percent in the third quarter from 1.0 percent in the previous quarter, the Central Statistical Office (KSH) said in a first reading on Friday.
Analysts had estimated annual economic growth of 1.1 percent in the third quarter.
GDP growth reached 0.8 percent, quarter-on-quarter, after stagnating in the second quarter and climbing 0.6 percent in January-March.
The analysts’ new projections for full-year GDP growth were 1.1-1.2 percent. Fourth quarter growth was projected at 2.7 percent, year-on-year.
Takarekbank’s Gergely Suppan said the scale of growth in the third quarter was surprising, and that full-year growth could exceed the bank’s 1.2 percent projection.
Fresh industrial output data show that exports continue to be the engine of growth, but the rise in retail sales indicate domestic consumption is finally starting to recover after dropping for a year and a half, Suppan added.
Zoltan Arokszallasi of Erste Bank said the second reading of the third quarter data might show a rise in government consumption.