Oct. 6 (Bloomberg) -- Hungary’s industrial production unexpectedly declined in August, adding to evidence that the economic recovery from the worst recession in 18 years is petering out.
Production dropped a workday-adjusted 0.4 percent from a year earlier, compared with a 2.7 percent increase in July, the statistics office in Budapest said in a preliminary report today. The median estimate of 14 economists surveyed by Bloomberg was for growth of 1.3 percent.
“This fits into the pattern of the past six months in which exports, which were once the engine of growth, are slowing because of lower demand abroad,” statistician Miklos Schindele told reporters.
Exports to the euro region fueled Hungary’s recovery from its worst recession since 1991 years, propelling the economy to the fastest growth since 2006 in the first quarter as factories such as Audi AG and Nokia Oyj boosted production. Hungary’s growth halted in the second quarter as the global economic revival faltered, cutting demand for the nation’s exports.
The government has lowered its growth forecast to 1.5 percent for next year from 3 percent. The central bank estimates the expansion may slow to 1 percent in 2012 from 1.6 percent this year.
--Editors: Balazs Penz, Alan Crosby
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