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Surplus on external trade in services drops to EUR 790 mln in Q2

MNB

In the 2nd quarter of 2020, the surplus on external trade in services dropped to EUR 790 million from EUR 1.634 billion in the same quarter of 2019, according to data released by the Central Statistical Office (KSH).

In the second quarter of 2020, the value of exports amounted to EUR 4.1 bln and that of imports to EUR 3.3 bln.

Some 36% of the surplus came from physical inputs owned by others and 31% from transportation services.

About 56% of our service exports and 61% of our service imports have been transacted with EU countries, generating a surplus of EUR 242 mln in this relation. Germany, one of Hungaryʼs most important trading partners, had a share of 19%, the United States had 9.5 %, while the United Kingdom had 8% of the total turnover.

Business services accounted for 57% of total service exports, followed by transport services with 21% and tourism with 11%. The former service groups were dominant in terms of imports, too. The share of business services was the most outstanding, with its 67% while the transport services accounted for 19% and tourism for 9.3% in the total import turnover.

Value of service exports drop 40% y.o.y in Q2

Compared to the second quarter of 2019, the value of service exports decreased by 40% in terms of EUR and that of imports by 25%.

KSH says that the decrease in surplus can be explained by the drastic decrease in tourism (86%), and the lowering balance sheet of transport services (by 69%) and physical inputs owned by others (36%) significantly contributed to the remission as well.

Hungaryʼs balance decreased by 80%, EUR 983 mln in the trade with the European Union. In the case of non-EU countries, Hungaryʼs balance fell by 54%, EUR 651 mln, primarily due to the lowering of export with the United States and the United Kingdom. Balance in external trade in services with these two countries dropped by 66% (EUR 195 mln) and by 54% (EUR 144 mln), respectively.

In the first half of 2020, the value of exports was EUR 9.7 bln and that of imports EUR 7.3 bln. Compared to the first half of the previous year, the value of exports decreased by 25%, while that of imports fell by 15%.

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