Consumption increased by 3.4%

Last year, the economy began to recover from the recession in the third quarter. Domestic and pan-European prospects are supported by energy prices that have stabilized at a significantly lower level than before, but they are overshadowed by slowing internal and external demand due to the war in Ukraine and high global interest rates. The main driving force behind this year’s growth is the replacement of deferred consumption, which is supported by substantially recovering real wages. However, the upswing in consumption is progressing only gradually, as households first try to replenish their savings instead of spending the increased wage bill. The consumption expenditure of households improved slightly compared to the previous quarter, they measured an increase of 0.6%, the 3.4% expansion measured on a year-on-year basis was also helped by the base effect.

Economic performance in the first quarter was supported by net exports, after the volume of imports decreased more (9.2%) than that of exports (5.3%). Domestic industry, which accounts for approximately a quarter of the economy, decreased by 0.1% compared to the previous quarter, according to adjusted data. It can be seen that compared to the previous quarter, the performance of the industry did not significantly deteriorate, the two fewer working days this year played a role in the 4.2% decrease compared to the same period of the previous year (raw data). In the rest of the year, with a minor recovery in consumption and industry, we expect a significant increase in imports, while a significant increase in exports is hindered by the weak external economy.