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Surplus on external trade in services at EUR 1.653 bln in Q3

Trade

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In the third quarter of 2020, Hungaryʼs surplus on external trade in services stood at EUR 1.653 billion, some EUR 908 million below the surplus registered in Q3 2019, according to data by the Central Statistical Office (KSH).

Image by Shutterstock.com

In Q3 2020, service exports and imports decreased by 33% and 31% respectively in EUR compared to the same period of the previous year.

The value of service exports fell by 33% in terms of EUR  and that of imports by 31%. The surplus lowered by EUR 908 million compared to the same period of the previous year.

The decrease in surplus can be explained by the drop in the surplus of travel by 50% in the first place, furthermore the lowering balance sheet of transport services (by 39%) and physical inputs owned by others (by 12%) contributed as well to the trend.

Hungaryʼs balance decreased by 34%, EUR 442 million in the trade with the European Union.

In the case of non-EU countries, Hungaryʼs balance fell by 37%, EUR 466 million, primarily due to lowering export with the United States and the United Kingdom. The balance in external trade in services with the former dropped by 21% (EUR 51 million) and by 50% (EUR 132 million) with the latter.

The negative economic effects caused by the COVID-19 pandemic were slightly reduced compared to the previous quarter, KSH notes.

 

Germany remains most important partner

 

Some 42% of the Q3 2020 surplus came from travel, 30% from transportation services, and 20% from physical inputs owned by others.

About 65% of Hungaryʼs service exports and 72% of service imports were with EU countries, generating a surplus of EUR 860 million in this relation.

Hungaryʼs most important partner was Germany with 21% of the total turnover. The second most important partner, Austria, had a share of 8.8 %, while the United States, in the third place, had an 8.3% proportion in external trade in services.

The proportion of business services was 47% of total service exports, including 24% for other business services, followed by transport services with 24% and travel with 20% respectively. The former service groups were dominant in terms of imports, too: the share of business services was the most outstanding, accounting for 66% of total imports, including 39% for other business services, while the share of transport services was 20% and that of travel 8.8% respectively.

In January-September 2020, the value of exports amounted to EUR 14.8 bln and that of imports to EUR 10.7 bln.

In the first nine months of 2020, the value of exports decreased by 28%, that of imports by 21%, compared to the same period of the previous year

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