BUDAPEST, May 15 (Xinhua) -- Hungary's gross domestic product (GDP) rose by 4.4 percent according to raw data and by 4.7 percent according to seasonally and calendar adjusted and reconciled data in the first quarter of 2018, compared to the same period of 2017, the Central Statistical Office (KSH) reported on Tuesday.
The main contributors to the growth were market-based services, KSH added.
The Hungarian economy has been on a steadily expanding track in the first quarter, Minister for National Economy Mihaly Varga said after the release of official data.
"The sustainability of the current performance of the economy is indicated by the fact that both external and internal equilibrium processes are favorable, and growth is not generated by excessive borrowing," Varga pointed out.
"The main source of growth was the growth-enhancing effect of the six-year wage agreement, which led to additional income for workers due to wage increases," he underlined. He also said that reductions in social charges and corporate income tax were accountable for the success.
The economic stimulus effect of the said agreement was clearly reflected by the fact that in the first quarter, retail sales increased by an average of almost 8 percent, which is about the double of the same figure of 2017, according to Varga.
Tourism has also been well performed, the sector has shown a double-digit increase, while the housing construction sector has been expanded by a record 65 percent.
In the first quarter, the foreign trade balance showed a surplus of 2 billion euros (2.3 billion U.S. dollars), similar to last year.