In the last quarter of 2015, the Hungarian economy posted larger-than-expected growth of 3.2 percent year-on-year and 1 percent quarter-on-quarter, the latest report by the Central Statistical Office (KSH) revealed. In the whole year, GDP in Hungary grew by 2.9 percent, having remained well-above the EU average (1.5% in the euro area and 1.8% in the whole EU). All industries except for agriculture and construction contributed to the increase, KSH said.

The upward growth trend, which has been unbroken for three years now, shows that “Hungarian reforms are working”, the Economy Ministry said in response to the favorable data. Parallel to economic growth, the government debt-to-GDP ratio has also improved, the Ministry said on its website. Hungary’s external and internal positions also saw improvement as the foreign trade sector posted a surplus of EUR 8bn last year, and the state budget deficit is expected to be slightly below 2 percent of GDP, it added.

KSH also said that consumer prices (CPI) in Hungary rose by an annual 0.9% in January. The rate was level with that in December and below the 1.2% estimate by emerging market analysts in London. Harmonised for better comparison with other European Union member states, Hungary’s CPI was 1.1%. “The levels of the measures continue to indicate a restrained inflation environment,” Hungary’s Central Bank (MNB) commented in a monthly assessment of the inflation data.

via ksh.hu and kormany.hu