Hungary Faces Recession as GDP Declines for Two Consecutive Quarters

Economic Contraction Confirms Hungary Recession

The latest data confirms that the Hungary recession is deepening, as GDP shrank by 0.7% in Q3, marking two consecutive quarters of economic decline. 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

Declining performances in the agriculture, industry, and construction sectors have primarily driven the contraction in GDP, as these industries 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 ongoing Hungary recession, KSH reported that Hungary’s GDP for the first nine months of the year remains 0.7% higher than the same period in 2023, though the economy continues to face challenges.