Hungary's economy contracts on quarterly basis in Q2
July 30 (Reuters) -Hungary's economy contracted on a quarterly basis in the second quarter, for the first time since the start of 2023, as sagging demand in industry held back recovery.
Economic output dropped by 0.2% from the previous three months, the first decrease since the first quarter of 2023, Hungary's Central Statistics Office (KSH) said. Year-on-year, it grew by 1.5%, below a Reuters poll forecast of 2.0%.
The data, alongside Czech gross domestic product figures that are also due on Tuesday, are the first glimpse at the pace of recovery in central Europe in the April-June quarter as the region leans on renewed consumer demand - after the inflation surge of recent years subsided - to kick-start growth again.
"Economic growth in the second quarter was lower than previously expected, due to external factors," Hungary's Economy Ministry said.
"Industry's performance will continue to be supported by the recovery in Europe's external markets... But for now, companies are seeing falling demand."
Reporting by Jason Hovet in Prague, Boldizsar Gyori in Budapest, and Antonis Pothitos in Gdansk; Editing by Janane Venkatraman
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