Hungarian Households Spend 4.1% More: Investment Plummets 6.3%

Actual consumption by Hungarian households in the second quarter was 4.1% higher than in the same period last year. Gross fixed capital formation fell by 6.3% during the same period. The Hungarian Central Statistical Office (KSH) reported these figures on September 1 in its second estimate of gross domestic product.

Overall, the economy grew by 1.7% compared to the same quarter a year earlier. After seasonal and calendar adjustments, it increased by 0.5% compared to the first quarter. In the first half of the year, growth also reached 1.7%. Compared to the flash estimate from late July, KSH raised the adjusted index by 0.1 percentage points. ##Drought Weighs on Agriculture Agriculture suffered a sharp decline. KSH notes: “Due to the severe drought, gross value added in agriculture was 12.4% below the same period last year.” The sector dragged down gross domestic product by 0.3 percentage points. Compared to the previous quarter, it fell by 15.6%.

Manufacturing contributed 0.7 percentage points. Its value added rose by 3.7%, while that of the manufacturing sector rose by 2.7%. The largest contribution came from the manufacture of computers, electronic, and optical products. The manufacture of coke and petroleum products had the strongest negative impact. Construction declined by 0.3%.

Services contributed 1.1 percentage points, more than any other sector. Their value added grew by 1.9%. Financial and insurance services rose by 6.0%, while professional, scientific, technical, and administrative activities increased by 5.2%. Trade grew by 1.7%. ##Imports Outpace Exports Domestic household consumption expenditures rose by 4.8%. Durable goods rose by 6.4%, semi-durable goods by 7.3%, non-durable goods by 5.2%, and services by 4.2%. Actual government consumption grew by 2.0%. Taken together, consumption boosted gross domestic product by 2.8 percentage points.

Gross fixed capital formation, on the other hand, fell by 6.3%. Both construction investment and equipment investment declined equally. Compared to the previous quarter, they fell by 3.6%.

In foreign trade, imports rose by 6.3%, while exports rose by only 1.8%. In merchandise trade, which accounts for more than 80% of foreign trade, imports grew by 8.4% and exports by 2.4%. The trade balance remained positive at 817 billion forints. Nevertheless, foreign trade cost growth 2.9 percentage points.

For German suppliers, Hungary thus splits into two markets. Consumer-oriented suppliers are meeting with demand: imports of goods rose by 8.4%, durable goods by 6.4%, and trade increased by 1.7%. Suppliers of machinery and construction services, however, are facing the opposite situation. Investment in equipment is declining, and the construction sector is shrinking. Those selling capital goods to Hungary should not expect a turnaround before the end of the year. Those supplying consumer goods will find a market that is translating rising incomes into imports.

Sources: Hungarian Central Statistical Office (KSH), second estimate of gross domestic product for the second quarter of 2026, September 1, 2026 (HU/EN).

SK, Frankfurt