Central Statistical Office published devastating data on the Hungarian economy
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Hungary’s GDP stagnated in the fourth quarter and contracted 0.9 percent in the full year, the Central Statistical Office (KSH) confirmed in a second reading of the data on Tuesday.
In 4th quarter 2023
The volume of GDP was unchanged according to raw data and was 0.5% higher according to seasonally and calendar adjusted and reconciled data than in the corresponding period of the previous year. The raw volume index in the second estimate was unchanged, while the seasonally and calendar adjusted and reconciled index became 0.1 percentage point higher compared to the flash estimate.
Production approach
According to KSH, industry and within that manufacturing both reduced their performance by 6.4% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the decrease were the manufacture of machinery and equipment not elsewhere classified and the manufacture of electrical equipment, while the manufacture of coke and refined petroleum products and the repair and installation of machinery and equipment slowed the fall in industry the most. The value added of construction was 7.4% lower than in the corresponding period of the previous year, while that of agriculture was 81.1% higher than the low base in the same period of the previous year.
The gross value added of services decreased by 1.0% in total. The highest increase (8.3%) occurred in human health and social work activities. The performance of information and communication was up by 5.0%, those of accommodation and food service activities as well as of arts, recreation and other service activities both by 3.6% and the performance of education by 2.6%. The value added of real estate activities rose by 2.1% and that of financial and insurance activities by 0.5%. The volume of the value added of public administration shrank by 1.7%, that of transportation and storage by 4.3%, the volume of the value added of professional, scientific, technical and administrative activities by 4.5% and that of wholesale and retail trade by 8.7%.
Agriculture contributed positively (by 2.5 percentage points) to the unchanged volume of gross domestic product in the 4th quarter of 2023. Industry lowered the volume of gross domestic product by 1.1 percentage points, services by 0.6 percentage point, construction by 0.5 percentage point and the balance of taxes and subsidies on products by 0.2 percentage point. Within services, it was human health and social work activities that contributed the most positively (by 0.3 percentage point) to the development of GDP.
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Expenditure approach
The actual final consumption of households rose by 1.0% compared to the same period of the previous year. Household final consumption expenditure, representing the largest proportion of the components of the actual final consumption of households, lessened by 0.2%. The (domestic) consumption expenditure of households realised on the territory of Hungary was up by 0.2%. Broken down by durability groups, the volume of domestic consumption expenditure decreased in the case of semi-durable and non-durable goods, by 2.1% and 0.3%, respectively, and rose among services and durable goods, by 0.9% and 1.5%, respectively.
The volume of social transfers in kind from the government went up by 4.6%, while that of the actual final consumption of the government diminished by 3.8%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) became 10.8% larger.
As a result of the above trends, actual final consumption grew by 0.2%.
Gross fixed capital formation was down by 3.0% in the 4th quarter compared to the corresponding period of the previous year. Both the volume of investments in construction and that in machinery and equipment fell. Out of the industries with the highest share of investments, the volume of developments decreased in manufacturing and in real estate activities, while it stagnated in transportation and storage.
Finance Minister – Mihaly Varga, and your Party Leader and current Prime Minister – Victor Mihaly Orban – what have you DONE to us ?
News centered on the performance of our Economy, that Varga & Orban “jointly” signed off on, the policies, direction post February 2020, the commencement of the Covid Pandemic in Hungary, the decisions they made, just continue to display, exhibit the cataclysmic WRONGFULNESS of there decisions.
Mihaly Varga & Victor Orban – were WARNED, put on notice, from sources inside Hungary and outside of Hungary – the EXTREME high risks they had SIGNED off on, for the future period in time of the Financial & Economic performance expectations of Hungary.
Varga & Orban – ignored greater “learned” advice they or the Government / Fidesz had in “there camp” and what we see FACTUALLY today is through there arrogance and inability to Manage the Hungarian Economy, sending us deeper into an abyss like un-known nadir trend.
Appalling & Humiliating – a DISGRACE.