GDP rose 2.6pc year-on-year in the second quarter, from 0.9pc growth in Q1, the Central Statistics Office (KSH) has said. Market services, industry and farming contributed most to the increase. Construction sector output continued to weigh on growth, KSH added. Minister of National Economy Mihály Varga said the data showed growth had “returned to normal” in Q2 after a temporary slowdown in Q1. He said headline growth exceeded the ministry’s own expectations. Growth in the second half of the year would be supported by a pickup in home construction spurred by the government’s expanded subsidy scheme, higher wages, an acceleration in the absorption of European Union funding and a strong performance in the farm sector. Varga said the government is standing by its target for full-year GDP growth of 2.5pc. Péter Virovácz of ING Bank said GDP growth for the year could be higher than the 2.2pc predicted earlier. However, to reach the government’s 2.5pc target, domestic output would need to rise 3.2pc on average in the second half.
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