World Economy

Hungary GDP Growth Contracts

Hungary GDP Growth ContractsHungary GDP Growth Contracts

Hungary?s growth hit negative numbers for the first time in four years, shrinking 0.8% in the first quarter after growing 0.6% in the previous three months, according to preliminary figures released Saturday by the Central Statistical Office. GDP dropped due to lower output in the automotive industry and lower levels of development funding from the European Union, National Economy Minister Mihaly Varga said, according to state news agency MTI. Varga spoke after economic performance figures were published Saturday morning showing that Hungary?s gross domestic product was up 0.9% in the first quarter of the year as compared to the same period a year earlier, but was down 0.8% from the preceding quarter. The minister said he considers the slowdown in growth temporary, as new orders in the construction sector are rising, the number of home building permits issued in the first quarter doubled and employment figures are also up compared to the same period a year ago.