Stagnant industry, a fall in GDP – there is no sign of a turning point

According to analysts, a positive turn is not expected in industrial production during the second half of the year, even in spite of the expected growth of the Mercedes plant. The weakening of the external demand, the decline in domestic consumption and investment decline will continue to pull back economic growth.

The KSH on Friday reported that industrial production in July stagnated on a year to year comparision and compared to the previous month decreased by 1.2 percent, according to seasonally adjusted and working days adjusted datas. The gross domestic product (GDP) fell by 1.3 percent in the second quarter, compared to the same period of last year, while on the basis of the datas of the first half of the year, the performance of the Hungarian economy shows a 1 percent decline. (MTI)