**Information Technology Drives Services Sector Growth in Hungary**
The Hungarian Central Statistical Office (KSH) has released data indicating that the services sector in Hungary has been experiencing significant growth, driven in large part by the information and communications technology (ICT) industry.
**Key Findings**
* The services sector grew by 6.5% year-on-year in the first quarter of 2023.
* The ICT industry contributed significantly to this growth, with a 10.4% increase in output.
* Other sectors contributing to the growth include transportation and storage, as well as financial and insurance activities.
The growth in the services sector is seen as a positive sign for the Hungarian economy, as it indicates a shift towards a more knowledge-based and value-added economy. The ICT industry is particularly important in this regard, as it plays a crucial role in driving innovation and productivity.
**Factors Driving Growth**
Several factors are contributing to the growth of the ICT industry in Hungary:
* **Skilled workforce:** Hungary has a highly skilled workforce in the ICT sector, with a strong educational system that produces graduates with the necessary technical skills.
* **Government support:** The Hungarian government has implemented policies to encourage the growth of the ICT industry, including tax incentives and support for research and development.
* **Foreign investment:** Hungary has attracted significant foreign investment in the ICT sector, with multinational companies such as IBM, Microsoft, and SAP establishing operations in the country.
**Outlook**
The growth of the services sector in Hungary is expected to continue in the coming years, driven by continued expansion in the ICT industry. The government’s commitment to supporting the ICT sector and the country’s skilled workforce are seen as key factors in this growth.
**Conclusion**
The growth of the services sector, particularly in the ICT industry, is a positive development for the Hungarian economy. It indicates a shift towards a more knowledge-based and value-added economy, and is supported by a skilled workforce, government support, and foreign investment. The continued growth of the ICT industry is expected to contribute significantly to the Hungarian economy in the coming years..
