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| Despite the weakness of the European economy, Hungary has escaped a technical recession. (Source: EPA-EFE) |
On November 14, the Hungarian Central Statistical Office (KSH) released data showing that the country's Gross Domestic Product (GDP) in the third quarter of 2023 increased by 0.9% compared to the second quarter, bringing the Central European country's economy out of a technical recession.
However, compared to the same period last year, the GDP of this European Union (EU) member economy in the third quarter still decreased by 0.4%.
According to KSH, the main causes of the decline in economic efficiency were industry and services, mainly wholesale and retail trade as well as scientific, technical and administrative activities. Meanwhile, the good performance of the agricultural sector contributed to improving the economic situation.
Affirming that the country's economy is now expected to return to sustainable growth, Hungarian Finance Minister Mihaly Varga wrote on his social media account: "The technical recession has ended in Hungary, the economy has entered a growth trajectory."
The Hungarian government's efforts to curb inflation have worked and real wages are rising again, he said.
The official believes that Hungary's agriculture, industry and exports have strengthened "despite the weakness of the European economy".
Hungary's inflation rate fell to 9.9% in October from a peak of 25.7% in January this year, according to KSH. Overall, in the first three quarters of 2023, the Hungarian economy contracted by 1.2% year-on-year.
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