Hungary’s industrial output grew 4 percent in July, current account deficit huge

Miskolc, 6 September 2022. Chocolate figurines are made at Nestlé's chocolate factory in Diósgyőr, Miskolc, on 6 September 2022. The 60-year-old factory in Miskolc is the only plant in the group to produce hollow figures. Source: MTI/Vajda János

Hungarian industrial output grew by an unadjusted annual 4 percent in July, quickening from growth of 1.5 percent in the previous month, the Central Statistical Office (KSH) said on Friday. In the meantime, Hungary’s current account posted a deficit of EUR 1.673 billion in July, more than double the 806 million deficit in June, the National Bank of Hungary (NBH) said on Wednesday.

Industrial output

Adjusted for the number of working days, July output was up 6.6 percent. Month on month, output grew by 1.1 percent, based on seasonally and working day-adjusted data. Output of the automotive industry, Hungary’s biggest manufacturing sector, increased by an annual 16.6 percent, and was up 2.9 percent from the previous month.

Output of the computer, electronics and optical equipment segment rose by 14.4 percent year on year. The food, drinks and tobacco segment rose by an annual 7.4 percent. In the January-July period, output increased by 4.9 percent from the same period a year earlier.

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Current account deficit

Hungary’s current account posted a deficit of EUR 1.673 billion in July, more than double the EUR 806 million deficit in June, the National Bank of Hungary (NBH) said in a release of preliminary data on Wednesday.

The trade balance was EUR 908 million in the red in July, resulting from an EUR 1.490 billion deficit in the trade of goods and an EUR 582 million surplus in the trade of services. The primary income balance showed a deficit of EUR 635 million, as investors repatriated EUR 449 million from direct investments. Capital transfers from the European Union came to EUR 301 million.