Bloomberg News

Hungary GDP Grew 1.4% in Fourth Quarter on Agriculture Boost

March 09, 2012

Hungary’s economy expanded 1.4 percent in the fourth quarter of 2011 from a year earlier as agricultural output boosted gross domestic product.

GDP increased 1.4 percent from a year earlier and rose a seasonally adjusted 0.3 percent from the third quarter, matching preliminary estimates, the statistics office in Budapest said in an e-mailed report today.

The European Commission last month forecast that Hungary’s economy will probably shrink 0.1 percent this year. One of the “main questions” is whether Hungary can avert a recession this year, Prime Minister Viktor Orban said yesterday.

The government is scaling back its projection for economic growth this year, maintaining that the country will probably avoid a recession, Mihaly Varga, Orban’s chief of staff, said on Feb. 20. The Cabinet’s estimate ranges between stagnation and 0.5 percent growth, Varga said last month. The official forecast is still 0.5 percent growth.

The forint rose 0.2 percent to 293.5 per euro at 9:32 a.m. in Budapest.

Agriculture added 0.9 percent to growth in the fourth quarter, according to the statistics office, followed by 0.8 percent for industrial output. Household consumption spending was unchanged in the final three months of the year compared with the year-ago period, the statistics office said.

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


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