FX.co ★ Hungary GDP Stalls in Q1

Hungary's gross domestic product showed no growth year-over-year for the first quarter of 2025, following a 0.4% expansion in the previous quarter, as corroborated by initial estimates. Notably, there was a slowdown in the sectors of commerce (growing at 2.1%, down from 2.8%), accommodation and catering services (rising by 1.7%, compared to 6.2%), and the overall service sector (advancing at 1.1%, down from 2.1%). Meanwhile, industrial activity experienced a more pronounced decline with industry contracting by 3.9% (compared to a decrease of 1.4% previously) and manufacturing dropping 4.6% (versus a 3.2% decline). The agricultural sector experienced a less severe decrease, shrinking by 0.7% as opposed to a substantial 13.6% downturn previously. However, these declines were somewhat counterbalanced by improved performances in education, which grew by 3.1% (from 1%), and transportation and warehousing, which increased by 1.6% (up from 1.2%). Seasonally adjusted on a quarterly basis, GDP contracted by 0.2% following a 0.6% increase in the prior quarter.