Central European Daily

Like in other regional countries there have been many Hungarian macro figures published during the week and delivered positive surprise for the market. GDP grew by 2.7% Y/Y and by 0.5% Q/Q in 4Q13, which is the highest read in the last 8 years. But not the speed of the growth is the biggest surprise, rather the structure of the growth. Since 2007 the net export was the main and almost only driver of the economic growth, but in 4Q13 all the subgroups contributed to the growth. Household consumption increased by 0.5% Y/Y, government consumption by 5.7% Y/Y, gross capital formation by 10.4% Y/Y and net export by 1.2% Y/Y.