Drop in Q4 investment data slightly bigger than expected
Investment volume fell 4.5% in Q4 from the same period a year earlier, the Central Statistics Office (KSH) said early Wednesday. Investments declined at the same rate for the full year. In Q2 2011 the annual drop was 6.2%. The average decrease in 2011 was also 4.5%, KSH said. Investment volume dropped yr/yr now for the 16th quarter in a row.
TakarékBank analyst Gergely Suppán said the data showed real estate and infrastructure investments weighed, while capacity expansion in the manufacturing and vehicle industries continued at a fast pace. He said the decline in investments could stop around the middle of the 2012, but he still put full-year investment volume down 0.5-1%. He added that low lending activity would not help the situation.
Mariann Trippon from the CIB Bank also said that the tight lending market, the stagnating economy and the uncertain outlook for Hungary's export markets would cause investment volume to stagnate or fall – albeit at a slower pace than last year – in 2012. She added that investment volume data for 2012 would be supported by a low base.
ADVERTISEMENT
Continental Dohányipari Revenue Nears HUF 64 bln in 2022
Parl't Approves Amendments to Legislation on Judiciary
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.
