Economic growth in Hungary has improved by 1.7% in the first half of 2016 compared to the data last year. Output index modified seasonally and according to calendar effect was at 1.2% in the given period, which figure does not reach the 28 EU states’ average rate of GDP growth (1.8%). The reason for the improvement is the strengthening service sector. There was a significant fall in the rate of investments in the first six months (-17.3% in comparison with last year’s data). The reason of the fall can be explained by the completion of projects financed by EU funds, and it concerned mainly state investments. The rate of industrial output was 2.3% higher than the rate last year in the January-June period, at the same time construction sector fell by 25% at the end of the period of EU financed projects. The rate of new residential property buildings grew by 11% in the first six months (in comparison with the same period last year).
The handover of residential properties is expected to increase in the upcoming 12 months as a result of the growing number of issued building permits and the new developments which are already in process. (This trend can be owed to the decrease of VAT for new properties and the introduction of state funded benefits –CSOK – introduced by the government.
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