GDP growth is likely to accelerate in Q4, economy minister Mihaly Varga said in a TV interview commenting on the flash GDP figures for Q3. As we reported, GDP growth picked up to 3.6% y/y in Q3 and the cumulative growth came at 3.7% y/y in Q1-Q3. We argued that the data suggests strong chances that the government’s full-year growth forecast of 4.1% will be missed while Varga abstained from commenting on the issue. His projection for stronger growth in Q4 was based on expectations for stronger retail sales and consumption as well as a usual concentration of investment spending in the last quarter of the year.
The Q3 economic growth was due to the industry, construction and the market services sectors, based on the available data, Varga said. He positively evaluated the growth print, pointing out that it was significantly above the EU average and ensured continued convergence of the Hungarian economy. The growth was strong and sustainable, he said. Policy efforts in the next period should be directed at further improving competitiveness, fostering the digitalization of the economy, continuing the transformation of vocational training and continuing to facilitate the transition of the public scheme workers to the primary labor market, Varga stated.