Hungary’s investments drop 9.3% in Q3
The volume of investments in the Hungarian economy dropped by 9.3% in the third-quarter of the year, as compared to the same period a year earlier, Hungary’s Central Statistical Office KSH reported today in a first reading of data. In the first three-quarters of 2016, investment performance fell by 14% compared to a year earlier.
The volume of investments changed differently in the case of enterprises and budgetary units and entities, KSH said in its report. While it was up 3.3% among enterprises, it was down by 57% in the case of budgetary units and entities – due to the lower volume of developments financed from EU funds – compared to one year earlier.
Within the volume of investment activities – which grew by 2.7%, according to seasonally adjusted volume indices – investments in machinery and equipment grew by 4.7%, while construction investments fell by 21.
In more than half of sectors, a rise was registered in investment activity, being the most significant (46%) in financial and insurance activities, where the purchase of new computing devices also enhanced the performance of investments, KSH said.
After decreases lasting for more than a year, the performance of investments in agriculture, forestry and fishing was up by 35%, which was influenced by the purchase of machinery and transport equipment as well as large investments in plantations, according to KSH. Developments in manufacturing, realizing one-third of investments in the national economy, were 15% higher than in the base period.
The volume of investments increased by 8.6% in real estate activities, the performance of investments – along with a rise in the volume of turnover of retail stores – was up by 15% in wholesale and retail trade, and repair of motor vehicles and motorcycles, while the growth of investments in electricity, gas, steam and air conditioning supply (2%) was influenced, among other things, by expenditure on renovations of long-distance electricity transmission lines.
KSH noted that with the completion at the end of 2015 of developments financed from EU funds, investments had decreased to a high extent in human health and social work activities (73%), in public administration and defense and compulsory social security (41%), as well as in education (23%).
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