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Surplus on external trade in services at EUR 826 mln in Q1

Trade

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In the first quarter of 2021 service exports and imports calculated in EUR decreased by 25% and 16% respectively compared to the same period of the previous year, with the surplus adding up to EUR 826 million, according to data by the Central Statistical Office (KSH).

The negative economic impact of the COVID-19 pandemic continues to significantly reduce external trade in services, KSH notes.

The value of exports amounted to EUR 4.3 bln, that of imports to EUR 3.5 bln.

Manufacturing services on physical inputs owned by others contributed an increase of 319, travel of 317, and transport services of EUR 282 mln to the surplus of the first quarter of 2021, among the service groups. 

Some 64% of Hungary's service exports and 70% of service imports were transacted with EU countries, generating a surplus of EUR 297 mln in this relation.

Hungary's most important partner was still Germany with 20% of the total turnover. The second most important partner, the United States, had a share of 9.4 %, in the third place, Austria had a 7.8% proportion in external trade in services.

The proportion of business services was 53% of total service exports, (including 27% for other business services), followed by transport services with 25% and travel with 9.8%. The share of business services was the most relevant on the import side too, accounting for 69% of total imports, (including 41% for other business services), followed by transport services with 23% and maintenance and repair services n.i.e in the third place with 3.1%.

Surplus down EUR 724 mln compared to Q1 2020

The surplus on external trade in services fell by EUR 724 mln compared to Q1 2020

The significant reduction in the surplus is mainly explained by a deterioration in the travel and business services balances of EUR 308 and 204 million respectively, KSH notes.

Hungary's surplus in EU trade decreased by 57%, by EUR 400 mln, mainly due to the deterioration of the trade balance with Belgium, which decreased by EUR 198 mln.

For countries outside the EU, Hungary's balance worsened by EUR 324 million, or 38%, mainly due to a 63% (EUR 165 mln) deterioration in trade balance with the United Kingdom.

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