Bloomberg News

Hungary Economy Accelerated in 3rd Quarter on Farms, Exports

December 09, 2011

(Updates with comment in third paragraph, 2012 growth in fourth, budget in fifth, output detail in last.)

Dec. 9 (Bloomberg) -- Hungary’s economic growth accelerated in the third quarter as farm output and industrial exports increased.

Gross domestic product rose 0.5 percent from the previous three months, when growth was 0.2 percent, the statistics office in Budapest said at a news conference today. The economy expanded 1.4 percent from a year earlier after 1.5 percent in the second quarter.

“Growth was mainly due to agricultural production and industrial exports,” the statistics office said in its report.

The government will probably have to “strongly” reduce its outlook for growth in 2012 because of European banks pulling capital out of Hungary and a slowing German economy, Prime Minister Viktor Orban said in an interview with French daily Les Echos today.

The Cabinet based its 2012 draft budget on a growth forecast of 1.5 percent. Expansion may be between 0.5 percent and 1 percent, Economy Minister Gyorgy Matolcsy said last month.

Agricultural output rose 28.5 percent in the third quarter from a year earlier, while exports rose 7.6 percent, the statistics office said. Construction output plunged 14.3 percent. Household spending rose 0.1 percent.

--Editors: Balazs Penz, James M. Gomez

To contact the reporter on this story: Zoltan Simon in Budapest at zsimon@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net -0- Dec/09/2011 08:55 GMT


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