BUDAPEST, Feb. 14 (Xinhua) -- Hungary's annual gross domestic product (GDP) growth fell to 4.6 percent in 2022 from 7.1 percent in 2021, the Hungarian Central Statistical Office (KSH) said Tuesday.

The Hungarian economy "remained in a growth phase last year" even amid an enduring Ukraine crisis and EU sanctions against Russia, Hungarian Minister of Finance Mihaly Varga said Tuesday at a press conference, adding that the growth momentum remained "above the European average."

Meanwhile, local economic news portal Portfolio said as the country's GDP "shrank in two consecutive quarters," it shows that "Hungary is now in a technical recession."

The energy crisis drained a significant amount of income from the country, weakening internal demand and cutting down household consumption, it said, adding that investment momentum also waned.

The relatively strong yearly data was due to the "rebound effect" from the pandemic, which lasted for the first two quarters of 2022, it said.

Despite the technical recession, Portfolio expected the economy to turn around in the last two quarters of 2023 and finish the year with a modest growth of around 1 percent, somewhat under the government's expectation of 1.5 percent. Enditem

Related

Go to Forum >>0 Comment(s)