Hungary officially in recession

Hungary entered the recession during the last quarter of 2008, when the economy shrunk 1%, compared to Q3, data at the Central Statistics Office indicate, according to Reuters. These are the lowest figures since 1996, when Hungary begun to publish its quarterly evolution of the GDP.

Compared to Q4 2007, the economy shrunk 2%. In Q3 2008, the decrease was expected to be 0.1%, but the final figures showed a 0.5% negative growth. Danske Bank official Lars Christensen estimates that the Hungarian economy may lose up to 5% this year.

The Hungarian government revised its estimations from a 1% decrease to 3% and changed its budgetary plans, in the attempt to compensate the income decrease.

In 2008, the total growth in Hungary was 0.6%, after an 1.1% advance in 2007 and 4.1% in 2006.