Hungary’s investments drop 9.3% in Q3

Conferences

pixabay

The volume of investments in the Hungarian economy dropped by 9.3% in the third-quarter of the year, as compared to the same period a year earlier, Hungary’s Central Statistical Office KSH reported today in a first reading of data. In the first three-quarters of 2016, investment performance fell by 14% compared to a year earlier.

The volume of investments changed differently in the case of enterprises and budgetary units and entities, KSH said in its report. While it was up 3.3% among enterprises, it was down by 57% in the case of budgetary units and entities – due to the lower volume of developments financed from EU funds – compared to one year earlier.

Within the volume of investment activities – which grew by 2.7%, according to seasonally adjusted volume indices – investments in machinery and equipment grew by 4.7%, while construction investments fell by 21.

In more than half of sectors, a rise was registered in investment activity, being the most significant (46%) in financial and insurance activities, where the purchase of new computing devices also enhanced the performance of investments, KSH said.

After decreases lasting for more than a year, the performance of investments in agriculture, forestry and fishing was up by 35%, which was influenced by the purchase of machinery and transport equipment as well as large investments in plantations, according to KSH. Developments in manufacturing, realizing one-third of investments in the national economy, were 15% higher than in the base period.

The volume of investments increased by 8.6% in real estate activities, the performance of investments – along with a rise in the volume of turnover of retail stores – was up by 15% in wholesale and retail trade, and repair of motor vehicles and motorcycles, while the growth of investments in electricity, gas, steam and air conditioning supply (2%) was influenced, among other things, by expenditure on renovations of long-distance electricity transmission lines.

KSH noted that with the completion at the end of 2015 of developments financed from EU funds, investments had decreased to a high extent in human health and social work activities (73%), in public administration and defense and compulsory social security (41%), as well as in education (23%).

ADVERTISEMENT

Czech economic confidence weakens in September Analysis

Czech economic confidence weakens in September

Parl't extends pandemic legal provisions Parliament

Parl't extends pandemic legal provisions

Energy Efficiency: End-users, Energy Traders and Other Stake... Inside View

Energy Efficiency: End-users, Energy Traders and Other Stake...

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.