Economy 6 June 2025, 12:07pm

Hungary's first-quarter GDP among the worst in Europe

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The European Union's GDP grew by 1.6% on an annual basis and 0.6% on a quarterly basis in the first quarter of 2025, more than what the preliminary figures showed. However, the report published by Eurostat, the statistical office of the EU on Friday, highlights that the overall picture has not really improved; it is simply that Ireland's high growth figures have been included in the statistics. The detailed report reveals that the Hungarian economy has been underperforming, with the country positioned close to the bottom in the growth rankings.

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The European Union's economic output grew by 0.6% on a quarterly basis, with Ireland's 9.7% increase playing a significant role. The island nation's unique economic structure has enabled it to achieve significant growth, although its own government questions the relevance of these figures.

This time, the increase is due to a sharp rise in pharmaceutical exports, particularly to the United States, which has been affected by President Donald Trump's trade tariffs.

Besides Ireland, three other countries recorded strong quarterly growth: Malta (2.1%), Cyprus (1.3%), and two of Hungary's regional peers, the Czech Republic (0.8%) and Poland (0.7%). Seven countries, including Hungary, recorded economic contraction, with a 0.2% drop in GDP.

in the region, only slovenia showed an ever weaker performance.

Looking at GDP growth over the last year, Ireland's absurd growth of 21.1% stands out, followed by Poland (3.7%), Bulgaria and Croatia (3.1%), and Lithuania (3%). Denmark (3.6%) and the Mediterranean island countries have also performed well.

The Hungarian economy's three-year slump is even more evident in the annual data. The country suffered the second biggest economic contraction (-0.4%) after Slovenia (-0.8%), alongside Austria and Luxembourg, which, like Ireland, also have GDP figures that are difficult to decipher.