KSH: Hungary’s investments drop 9.6% in Q1
The volume of investments in the Hungarian economy dipped by 9.6% in the first quarter of the year compare to the same period a year earlier, the Hungarian Central Statistical Office (KSH) reported today in a first release of data. According to seasonally adjusted volume indices, investments fell by 2.4%.
According to KSH, the drop was chiefly due to the completion of developments financed from EU sources, which has a greater impact on the investments of budgetary units and entities. In the less affected areas, such as machinery and equipment investments, as well as in some sectors (such as manufacturing), the decline was smaller, KSH said.
This is the second biggest drop in investments since 2000, according to reports. The largest drop was seen in 2009, at the peak of the crisis, Hungarian online daily index.hu reported today.
Data from KSH show that investments in machinery and equipment decreased 3%, while construction investments were reduced significantly, by 19%. The performance of investments decreased by 4.9% in the case of enterprises employing at least 50 persons and accounting for more than half of investments, and fell by 39% in the public sector, KSH added.
Developments in manufacturing, accounting for more than one third of investments in the national economy, were cut by 3.6% due to the fall of investments in the manufacture of transport equipment, manufacture of machinery and equipment and manufacture of chemicals and chemical products, KSH said in the report.
According to the office, the performance of investments in real estate activities practically stagnated (+0.1%), as the construction of residential homes declined, while commercial real estate developments increased.
In accommodation and food service activities (16%) hotel construction and renovations increased the performance of investments, according to KSH. The increase of investments in arts, entertainment and recreation (32%) was the result of some large-scale investments. In the case of other services (190%), the reconstruction of spas and church buildings increased the performance of investments, the report added.
Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%
Bulgaria's Household Income, Spending Rise 20% in 2023
Spar Magyarország Revenue Climbs Close to 16% in 2023
Hungary Launches HUF 15 bln Tourism Sector Support Program
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
