KSH: Hungary investments grow 16.3% in Q3
Investment volume in Hungary increased by 16.3% year-on-year in the third quarter, primarily lifted by capital expenditures in the logistics and manufacturing sectors, the Central Statistics Office (KSH) revealed today in its publication.
KSH attributes the sharp increase to a high base as investment volume rose by a year-on-year 9.8% in the third quarter of last year.
Investments saw a rise of 0.8% from the second quarter, seasonally adjusted figures show, and at current prices, investments came to HUF 1.35 trillion during the period.
Investments in the first three quarters surged by a year-on-year 19.5%, while they rose by 6.6% in 2013 after four years of contraction.
Q3 manufacturing sector investments climbed 10.8% from a year earlier and stood at HUF 382 bln in Q3. Investments in the logistics sector were up 33.5% in Q3 and reached HUF 269.6 bln at current prices.
Nearly one-fifth of all investments in the third quarter went into the logistics sector, where investments were up by 33.5% from Q3 2013. Farm investments fell by 3.5%, and their share was little less than by 7%.
The three sectors where investments dropped in year-on-year terms were utilities (a drop of 5.1%), the real estate sector that includes home construction (-0.7%) and the financial and insurance sector where investments plunged by 25.2%.
Public administration saw an investment rise of 51.3% in the third quarter (HUF 67.7 bln or a share of 5%), while investment in education rose a below-average 7.4% year-on-year, and reached HUF 28.0 bln at current prices. Investment in health and social services rose nearly by a quarter (HUF 23.5 bln).
Within the manufacturing sector, investment growth primarily resulted from developments in segments acting as suppliers to vehicle manufacturing such as the manufacturing of rubber and plastic goods and the manufacturing of computers, electronic and optical products, KSH said. Investments also grew substantially in the food industry and in the chemical industry, the report noted.
Construction investments came to HUF 701.1 bln in the quarter, increasing 12.2%. Investments in machinery and equipment reached HUF 633.8 bln, climbing 22.2%.
Investments rose considerably more in the public sector than in the private sector. Public-sector investments were up 36.8%, reaching HUF 218.9 bln, while investments in the private sector grew 11.8% to HUF 738.7 bln, although the figure excludes businesses employing fewer than 50 workers.
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