In the third quarter of this year, the volume of investment increased by 9.8 percent, a figure unseen since 2004. The fact that the majority of sectors within the national economy contributed to this growth signals steady and sound future expansion for the Hungarian economy.
The volume of investment was higher in altogether fifteen national economic sectors compared to the third quarter of the previous year. Investment regarding construction as well as machinery and equipment was up by 9.5 percent and more than 10 percent, respectively, year-on-year. The prevalent downward trend concerning manufacturing industry investment, which constitutes some one-third of total investment volume within the national economy, appears to have been reversed in the previous quarter and in the third quarter a breakthrough was achieved: the sector posted remarkable growth of 13.6 percent. Within the manufacturing industry, investment growth concerning vehicle manufacturing and related supplier divisions as well as the food industry was also outstanding.
As a result of water purifying and sewage projects, investment increased by more than 90 percent in the field of water and waste management. Due to purchases of machinery and the construction of storage facilities, agricultural investment improved dynamically, by 36.3 percent. The field of trade and vehicle repair posted growth of more than 21 percent, and within that the largest increase was recorded with regard to the retail sector.
Investment volume was also up quarter-on-quarter: on the basis of seasonally adjusted data it increased by 1.3 percent. Thanks to extraordinary investment growth, the 1.7 percent expansion of the Hungarian economy in the third quarter, the better-than-expected industrial and construction sector data as well as the record-breaking employment figures, Hungary is anticipated to a enter a stable and balanced growth path. Favourable data underpin the Government’s prognosis that GDP will this year reach — or under auspicious circumstances even exceed – 1 percent and they increase odds in 2014 for more than 2 percent growth, above the Government’s current estimate.
Ministry for National Economy