Hungary investments jump 22.6% in Q1
Investment volume in Hungary rose 22.6% y. o. y. in the first quarter, lifted by capital expenditures in the manufacturing, transport and farm sectors, data published by the Central Statistics Office (KSH) on Friday show.
In absolute terms, investments came to HUF 824.1 billion, at current prices, during the period. Manufacturing investments rose 27.6%, reaching HUF 269.2 billion at current prices. Investments in the transport and logistics sector climbed 64.6% to reach HUF 122.4 billion. Farm investments increased 18.5% and were at HUF 51.3 billion.
KSH said transport and logistics sector investments were lifted by public transport developments in big urban centres, fleet expansions and railway and road construction. It said investments in manufacturing were mainly at automotive industry suppliers in the rubber, plastics, textile and electronics sectors.
Investments in machinery, equipment and vehicles rose 25.2%, reaching HUF 462.4 billion. Construction investments were up 20.2% at HUF 345.7 billion. Private sector investment was up 26.4% at HUF 441.0 billion. Public sector investment increased 15.1% to HUF 98.8 billion. Investment volume in Hungary rose 7.2% during all of last year, reaching HUF 4,522.7 billion.
The National Economy Ministry said the fresh data showed an unprecedented increase, adding that investments had grown for the fourth quarter in a row. It said the most important sectors of the economy had contributed to the rise, evidence of the strong structure of growth of the Hungarian economy.
Erste Bank analyst Orsolya Nyeste said infrastructure investments were helped by the accelerated call-down of European Union funding, but added that there were also positive signs in the private sector, notably in the automotive industry.
András Balatoni of ING Bank said investments had started to grow in the private sector as well as the public sector. He also noted the base effect on the big increase in Q1. In Q1 2013, investment volume dropped 8.7%.
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