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Hungary saw biggest growth in three years

Staff Writer |
Hungary’s economic growth rate of 4.1 percent is the highest year-on-year figure in three years.

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The rate of growth beats prior estimates by international institutions and market analysts by a wide margin, while it is in line with the Ministry’s predictions.

Favourable data are the result of the six-year wage agreement concluded in November 2016, tax reductions and rising output in the industrial and construction sectors.

Faster growth had been driven three major factors. First, industrial sector output – thanks to positive external and internal trends – gained 7.8 percent in the observed period.

Second, the construction sector has seen output increase of some 25 percent, fuelled by infrastructure development and corporate projects as well as a housing boom which has been underpinned by the Family Housing Allowance (CSOK) programme.

Third, the six-year wage agreement had led to dynamic wage growth, which in turn lifted demand and output at the services sector.