Hungary investment volume up 17% in 2018

Sustainability

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The fourth quarter of 2018 saw a continuation in the dynamic expansion of investments in the national economy, lasting since the beginning of 2017, the Central Statistical Office (KSH) reported on Thursday. In 2018 overall, investment volume rose by 17%, to its highest level yet.

The high level of growth was primarily attributed to construction investments related to residential buildings and infrastructural developments, as well as to capacity-increasing investments in manufacturing.

Investment volume in Hungary rose 16.9% year-on-year in the fourth quarter. Growth slowed from 22.1% in Q3 2018. However, the seasonally adjusted volume of investments in Q4 exceeded the previous quarter’s by 3.8%.

Construction investments - representing nearly six-tenths of the total volume of investments - were up 24.0%, while investments in machinery and equipment - representing more than four-tenths of the total value of investments - rose 8.9% in Q4. In absolute terms, construction investments reached HUF 1.853 trillion, while machinery investments added up to almost HUF 1.3 tln in the period.

Investment activity rose in the decisive majority of sections of the national economy. Manufacturing sector investments were up 18.5% and reached HUF 844.2 billion in absolute terms in Q4, while real estate investments increased 21.0% and stood at HUF 536.9 bln. Investments in the logistics sector jumped 44.0% to HUF 594.9 bln, investments in the commerce and vehicle repair sector fell 9.5%, reaching HUF 135.8 bln, and investments in public administration and defense were down 3.1% to just over HUF 200.0 bln.

For the full year of 2018, investment volume in Hungary reached HUF 8.495 tln, up 17% year-on-year. The volume of construction investments grew by 22%, while investments in machinery and equipment increased by 11%.

Within sectors of the economy, investments in manufacturing were up 6.3% to HUF 2.233 tln. Investments in the logistics sector rose 33.5%, reaching HUF 1.429 tln, while investments in real estate climbed 17.3% to reach HUF 1.407 tln in 2018.

Investment data for the first quarter of 2019 will be published by the KSH on May 30.

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