Hungary Faces Recession as GDP Declines for Two Consecutive Quarters

Economic Contraction Confirmed
In the third quarter of 2023, Hungary’s GDP fell by 0.7% compared to the same period last year, and it mirrored the same decline when measured against the previous quarter. This follows a 0.2% decrease in the second quarter, solidifying the country’s recession status, characterized by two consecutive quarters of negative economic growth.

Sector Performance Analysis
The contraction in GDP has been primarily driven by poor performances in the agriculture, industry, and construction sectors, which collectively account for approximately one-third of the national economy. Despite these setbacks, the services sector has provided some offset, contributing positively to the overall economic landscape.

Year-to-Date GDP Performance
Despite the negative trends in the recent quarters, KSH reported that Hungary’s GDP for the first nine months of the year remains 0.7% higher than the same period in 2023, indicating that while the economy faces immediate challenges, it has shown resilience over the longer term.