In the first quarter of 2019, the dynamic expansion in investment that marked the whole of 2018 intensified further, as the volume of investments in the current quarter exceeded the corresponding period of the previous year by 26.4%, according to data published by the Central Statistical Office (KSH) on Thursday.
In absolute terms, investments came to HUF 1.687 trillion during the first quarter. Construction investments increased 32.4%, reaching HUF 882.2 bln. Machinery investments climbed 20.5% and stood at HUF 783.7 bln.
Capacity-increasing investments in manufacturing rose by 32.6% in the reference period.
The significant growth of investments was mainly the result of developments conducted by enterprises, which strongly exceeded the previous period, said the KSH.
Investment performance in the case of enterprises employing at least 50 people and realizing more than half of investments increased– at a rate above the average growth of the previous quarters – by 38%, and grew by 27% in the case of budgetary units performing more than one-tenth of investments, compared to the high base of the previous year.
In the first quarter of 2019, compared to the preceding quarter, the seasonally adjusted volume of investments increased – at a rate above the average growth of 2018 – by 6.8%.
Investment activity increased in almost every sector of the national economy. Of the sections carrying greatest weight, the highest investment volume growth (62.4%) was recorded in transportation and storage, where - similarly to previous periods - infrastructural developments (road, motorway and railway construction) funded from EU sources played a decisive role, but enterprises operating in local and long-distance passenger transport significantly increased their investments as well.
Investment volume in real estate activities, considered the second largest investor, grew at a rate below the national average (9.5%), mainly as a result of more moderate growth in residential construction. Investment in business facilities for rent (office buildings, retail units, warehouses, etc.) grew stronger. Investments of the three sections mentioned above delivered close to six-tenths of total investments in the sector.
State-financed investments – with a total share exceeding one-tenth – increased typically at a rate below the average of the national economy. As a result, the mainly publicly financed areas – mostly due to developments financed by the EU – played a still crucial, but - compared to previous periods - less important role in the growth that charactered the national economy as a whole.
The growth in investments in the sector of arts, entertainment and recreation (56%) was due to major sports and culture-related investments, with the sector’s investments exceeding the volume of investments in education and healthcare combined.
Investment data for the second quarter of 2019 will be published by the KSH on August 29.