Hungary's gross domestic product (GDP) experienced a year-on-year growth of 0.6% in the third quarter of 2025, aligning with preliminary forecasts and improving from the previous quarter's 0.1% increase. This growth rate marks the strongest performance since the second quarter of 2024 and is primarily attributed to robust activity in the construction sector, which grew by 2.6% compared to 3.7% in Q2, as well as in the services sector, which increased by 1.5% against 1.4%. Notable contributions within the services sector came from financial and insurance activities, rising significantly to 3.8% from 0.7%, and the accommodation and catering services, which posted a slight decrease to 3% from 3.1%.
In the industrial sector, the rate of contraction slowed, with an overall decline of 1.7% compared to a larger 2.9% drop in the previous quarter, particularly in manufacturing, which saw a lesser shrinkage of 0.8% versus 3.7%. On the expenditure front, household consumption, which constitutes the largest portion of actual consumption, continued its rise, albeit at a reduced pace of 2.6% compared to 3.5% previously. However, net external demand posed a challenge to growth as exports decreased by 0.6% compared to a 1% decline in the previous period, while imports rose by 3.9%, reversing from a 0.8% drop.
On a seasonally adjusted quarter-on-quarter basis, the Hungarian economy remained stagnant, following an upwardly revised 0.5% growth in the second quarter.
