According to the first estimate, the Hungarian GDP was down 2.4% on an annual basis in the second quarter. The seasonally and calendar-adjusted rate was 2.3%, which is the third-worst growth performance within the EU. Compared to the previous quarter, the GDP declined again, for the fourth time in a row, at a rate of 0.3%.
On the production side, value added decreased in every sectors save agriculture, which means the services sector growth turned into the negative, too. In the light of the accelerating fall in private consumption, this was expected. On the expenditure side, the contraction in final domestic use probably became steeper, while net export have continued to contribute positively and substantially to economic growth.
After the average GDP decrease of 1.7% in the first half of the year, the chances that the contraction ofthe annual GDP can be avoided in 2023 are virtually nil.
