KSH: Economic performance stagnated in the first quarter of 2025 compared to the first quarter of 2024

By: Trademagazin Date: 2025. 06. 03. 12:56

The volume of Hungary’s gross domestic product stagnated in the first quarter of 2025 according to raw data, and was 0.4 percent lower than the same period of the previous year according to seasonally and calendar-adjusted and balanced data, the Central Statistical Office (KSH) confirmed in its second estimate released on Tuesday.

Compared to the previous quarter – according to seasonally and calendar-adjusted and balanced data – the economic performance decreased by 0.2 percent.

On the production side, the performance of industry fell by 3.9 percent, including that of the manufacturing industry by 4.6 percent compared to the same period of the previous year. Among the manufacturing sectors, the production of electrical equipment contributed the most to the decline, while the production of computer, electronic and optical products slowed down the decline in industry the most.

The added value of the construction industry was 5.1 percent, and that of agriculture was 0.7 percent lower than the same period of the previous year.

The gross added value of services increased by 1.1 percent. The largest increase (3.5 percent) occurred in the education sector. The added value of art, leisure, and other services increased by 3.1 percent, that of human health and social care by 2.4 percent, and that of trade by 2.1 percent.

The performance of accommodation and catering services increased by 1.7 percent, that of transport and storage by 1.6 percent. The added value of financial and insurance activities increased by 1.3 percent, and that of professional, scientific, technical, and administrative activities by 0.9 percent. The performance of information, communication, and real estate transactions both decreased by 0.1 percent, and that of public administration by 1.2 percent, the Central Statistical Office (KSH) reported.

The stagnation of the gross domestic product in the first quarter of 2025 was mainly due to the positive contribution of services, including the expansion of trade (by 0.7 and 0.2 percentage points, respectively). The performance of industry reduced the performance of the national economy by 0.7 and that of the construction industry by 0.2 percentage points.

The balance of product taxes and subsidies increased GDP by 0.1 percentage points, while agriculture had no significant impact on the development of the gross domestic product, the report concluded.