Hungary's GDP in grows 3.5%

Hungary's gross domestic product (GDP) was up by 3.5 percent in the first quarter of 2014, compared to the same period last year, the Central Statistics Office (KSH) reported on Thursday, citing preliminary findings. According to KSH, faster growth in manufacturing and the construction industry spurred the economy forward. The October-December GDP had grown by 2.7 percent year-on-year. The last time Hungary's GDP grew this fast was in 2006. Following a period of recession, GDP has been growing at a steadily increasing rate since the second quarter of 2013. In 2013 GDP growth year-on-year was 1.1 percent. The National Economy Ministry issued a statement following the KSH announcement, saying that overall growth in 2014 could be anywhere from 0.3 to 0.6 percent higher than the 2.3 percent initially forecast. First quarter data indicates that the economy is on a healthy and sustainable growth track, as evidenced not only by manufacturing and building industry growth, but also by a rise in business confidence and the investment rate, the ministry noted. An increase in household consumption has also contributed to the growth as has a rise in real incomes, the ministry reported. The results of a detailed data analysis will be published on June 4.