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Investments in Hungary increased by 15% in Q2

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The expansion of investments in the national economy continued in the 2nd quarter, growing 15% year-on-year. Investments grew in almost the whole of Hungary’s economy, the Central Statistical Office (KSH) reported.

In the 2nd quarter of 2018, the seasonally adjusted volume of investments exceeded the previous quarter’s by 4.2% and the average of 2015’s quarters by 24%.

Compared to the same period of the previous year, the volume of investment activity in Q2 was up by 15%, which included a growth of 15% as well in the volume of construction investments, representing 54% of the investment outlay, and of 16% in the volume of investments in machinery and equipment, making up 45% of the investment outlay.

The volume of developments expanded by 10% in the group of enterprises employing at least 50 people, realizing more than half the investment performance, and by 44% in the case of budgetary units, accounting for 15% of the investment performance.

Investment activity rose in most of the areas of the economy. Out of the sections carrying large weight, the highest investment volume growth (of 22%) was recorded in transportation and storage, mainly due to ongoing road, motorway and railway constructions and reconstructions, moreover, enterprises engaged in transportation increased their investments, too.

The investment volume of real estate activities, representing about 16% of the investment outlay, rose by 7.9%, within this, the continued expansion in dwelling constructions and renovations was paralleled by growing investments in facilities to be leased (e.g. office buildings, warehouses, etc.)

Developments in manufacturing, which is a quarter of investments in the national economy, were up by 3.2%. Growths were registered in approximately the half of the sub-sections, the highest one in the manufacture of electrical equipment. There were outstanding volume increases in the manufacture of rubber, plastics and non-metallic mineral products as well as of machinery and equipment.

In the section of wholesale and retail trade, and repair of motor vehicles and motorcycles, the investment performance continued to grow (9.7%), and besides retail stores, wholesale networks, and enterprises engaged in the trade of motor vehicles and motorcycles also increased their investments.

Out of mainly publicly financed areas – primarily as a result of developments financed from EU funds – the investment volume was 75% higher in public administration, defense and compulsory social security, due to investments in law enforcement and national defense and also implemented in central government, and 23% higher in education – mainly owing to developments in higher education – than a year earlier.

However, in human health and social work activities – mostly because of a lower volume of investments in in-patient care – developments were lowered by 1.5%. (The share of the three former areas in investments in the national economy was more than one-tenth.) The 21% rise in investments in arts, entertainment and recreation section was still due to large-scale competitive sport and culture projects.

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