The high agriculture production grow the GDP

According to quarterly calculations gross domestic product of Hungary increased by 2.0 percent in the second quarter of 2008 (by both adjusted and non-adjusted for calendar effects), and by 1.9 percent in the first half of the year.

The
value added of commodity producing branches (agriculture, industry
and construction) grew by 6.9%,
a higher pace than the average of the national economy.Mainly due to the outstanding growth (33,8%) in
the agriculture performance. Last year’s lower performance and this
year’s favourable results in
plant cultivation were behind such an increase in agricultural
production.

The value added of industry after the
dynamic expand increased less, by 4.2% due to the lower increase in
exports. The decrease in the value added of construction moderated
(6.0%) as a consequence of the growth in construction of civil
engineering works (especially motorways).

The gross value added of services
stagnated in the second quarter of 2008. Among services, growth can
be observed in performance of transport, storage and communications
(1.0%) and public administration, education, health and social work
(1.3%). The performance of trade, hotels and restaurants showed a
slight decrease (0.7%) reflected by the decline of retail trade
turnover. In the field of financial intermediation, real estate,
renting and business activities, value added was moderately lower by
0.4% than the level observed in the same quarter of the previous year
due to the considerable measure of claims in the field of non-life
and life insurance activities on one hand, and the performance of
real estate, renting and business activities showed a slight growth
on the other hand.

Looking at the expenditure side of GDP,
final consumption of households increased by 1.2%, due to the
continuing expansion of household final consumption expenditure by
1.4%. Despite experiences of former quarters the decrease of social
transfers in kind from government and final consumption of government
stopped. Social transfer in kind from government rose by 0.9%, while
the government consumption by 0.5%. Actual final consumption
increased by 1.1%.

Gross fixed capital formation after
last quarters decreasing keep going down by 2.2%, due to the considerable downfall of investments in
manufacturing, in transport, storage and communications and in real
estate activities. The domestic use was on the increase by 1.9%.

With the terms of external trade
improving, the volume of exports and imports were up by 11.1% and
11.2%, respectively. Within these the exports and imports of
products, respectively, expanded by 11.9% and 10.6%, while the
exports of services grew by 7.1% and the imports of services rose by
14.6%.

In the first half-year the gross
domestic product increased by 1.9%. The value added of commodity producing branches grew by 5.2%, and
that of services increased by 0.5%. Actual final consumption
decreased by 0.2%, while final consumption of households showed a
growth of 0.1%. Gross capital formation went down by 3.6%, while
final use grew by 0.2%. Exports and imports expanded by 12.5% and by
10.7%.

According to seasonally adjusted data3
the economic growth in the second quarter of 2008 was 0.6% compared to the previous quarter.
Of which the increase of agriculture (6.4%) and that of

construction (2.6%) were the most
significant, while the services total remained unchanged. Household
consumption expenditure rose by 0.5%. The social transfers in kind
from government remained unchanged, while the actual final
consumption of government increased by 4.0%. Exports rose by 0.6%,
while imports by 1.0%.