The summer drought has hit the economy, causing an unpleasant surprise for GDP

In the third quarter of this year, Hungary's economy grew by 1.5% compared to the same period last year, according to the Central Statistical Office. However, the growth was only 0.1% compared to the previous quarter, marking the sixth consecutive quarter of GDP expansion. This quarter was particularly notable as it was the first fully influenced by the new government, which faced challenges such as drought affecting energy production. The reported growth fell short of analysts' expectations, who had predicted a 1.7% annual increase. The industrial sector contributed significantly to growth, while agriculture hindered it due to adverse weather conditions. Retail consumption showed slight weakness, and tourism performance declined across the quarter, indicating potential challenges ahead for sustained economic growth.