Hungarian GDP stagnated in the third quarter – services dragged, industry and construction weakened

Growth continued to be driven by the service sector and rising household consumption, which was also supported by rising real wages, tax exemptions and falling inflation. Industry and agriculture, on the other hand, held back growth: export-oriented manufacturing sectors – especially the automotive industry and electronics production – shrank amid weak external demand, while agriculture was hit by drought.

The performance of the construction industry also declined, partly due to subdued public investment. The decline in gross fixed capital formation that has been ongoing since 2022 continued, so investment continues to hold back growth. According to MBH Bank analysts, GDP growth of 2.9 percent is expected in 2026, due to the improvement in the external environment and new investment programs next year.