In October 2017, the volume of industrial output grew by 7.6 percent year-on-year, while in the period January-October 2017 output increased by 5.4 percent. Since January 2010 and the beginning of 2014, the sector’s output gained 37 percent and 20.3 percent, respectively, in Hungary. The latter figure places Hungary as first in terms of industrial output growth within the region, and it is well above the 7.9 percent average increase in the European Union.
Out of economic sectors, the output volume at manufacturers, the sector with the largest weight, added 8.2 percent to the overall increase, while mining and quarrying contributed with growth of 48 percent. Output was higher in all but one industrial sub sectors. With 3.5 percent year-on-year growth, motor vehicle manufacturing was the most successful sector as output has been doubled since 2010. In the observed period, output at rubber products manufacturers, a sector closely related to the car industry, increased by 13.9 percent.
Metal products manufacturing, crude oil refining, textile, electronics as well as machinery and equipment manufacturing all closed the month with double-digit output growth.
In comparison to the same period of 2016, industrial output was higher in every Hungarian region. Above-average growth was registered in Southern Transdanubia, Central Transdanubia and Northern Hungary.
The fact that the rate of corporate income tax was reduced to 9 percent as of 1 January 2017 and the volume of manufacturing sector investment rose by 15.8 percent in Q1-Q3 2017 is expected to underpin this positive trend.
The implementation of the Irinyi Plan is yet another factor aiming to facilitate output growth.
Source: kormany.hu – press release