GDP rises 4.9% in 2019
The volume of gross domestic product was 4.5% higher in Hungary in the Q4 2019 than in the corresponding period of the previous year, with GDP growth for the whole year reaching 4.9%, according to a second reading of data by the Central Statistical Office (KSH).
In the last quarter of 2019, the performance of industry rose by 3.2%, within which that of manufacturing by 3% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the growth of industry were the manufacture of electrical equipment and the manufacture of computer, electronic and optical products.
The value-added of construction increased by 11%, within which civil engineering went up significantly. The performance of agriculture grew by 1% compared to the corresponding period of the previous year, KSH says.
The gross value added of services was up by 4.6% in total, the highest growth (11%) was reached by wholesale and retail trade and accommodation and food service activities. The value-added of information and communication rose by 6.9% and that of professional, scientific, technical and administrative activities by 5.8%. The performance of financial and insurance activities increased by 4.5%. The total value-added of public administration, education and health diminished by 2%.
Services contributed by 2.6 percentage points, industry by 0.7 percentage point and construction by 0.6 percentage point to the 4.5% rise of GDP in the last quarter of 2019. The most significant contribution (1.3 percentage points) within services was observed for wholesale and retail trade and accommodation and food service activities.
Household consumption up 4.8% year-on-year
The actual final consumption of households was up by 4.8% compared to the same quarter of 2018. Household final consumption expenditure, representing the largest proportion of the components of the actual final consumption of households, rose by 5.4%. The domestic consumption expenditure of households realized on the territory of Hungary was 5.2% higher than a year earlier.
Within this, a higher-than-average growth was recorded in the volume of domestic consumption expenditure on durable goods (e.g. passenger motor vehicles, furniture, large electric household appliances: 19%) and semi-durable goods (e.g. clothing, small household appliances, parts for vehicles: 8%), compared with a lower-than-average rise for non-durable goods (e.g. food, alcoholic beverages, tobacco, electricity, gas and other fuels, water supply, medicines: 3.5%) as well as services (3.7%).
The volume of social transfers in kind from the government grew by 2.3% and that of the actual final consumption of the government by 7%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) was up by 2.9%.
As a result of the above trends, actual final consumption became 5.1% higher.
Gross fixed capital formation went on increasing substantially, it was 7% higher in the Q4 2019 than in the corresponding period of the previous year. The volume of investments in construction and in machinery and equipment both went up, the former at a higher rate. In the industries with the largest weight in total investments, the volume of investments rose in transportation and storage and real estate activities, while it decreased in manufacturing.
Gross capital formation increased by 9.7% compared to one year earlier.
As a result of the trends of consumption and capital formation, domestic use as a whole became 6.6% higher in Q4 2019.
In the external trade of the national economy a surplus of 208 billion forints – smaller than a year earlier – was generated at current prices. The volume increase of imports (5.9%) exceeded that of exports (3.3%). In trade in goods, exports grew by 1.3% and imports by 5.1%. Within the external trade of the national economy, the exports of services (including tourism) rose by 11% and their imports by 10% compared to one year earlier.
Actual final consumption contributed by 3.5 percentage points and gross capital formation by 3 percentage points to the 4.5% growth of GDP in the last 2019. The balance of external trade as a whole slowed down the growth of economic performance by 1.9 percentage points.
GDP up 1% compared to Q3 2019
Compared to Q3 2019, the performance of the economy went up by 1%.
From the production approach, gross value added grew by 1.5% in services, it decreased by 1.1% in industry and by 1.4% in construction.
From the expenditure approach, household final consumption expenditure became 1.4%, the actual final consumption of the government 1.2% and the volume of social transfers in kind from the government 0.5% higher out of the components of actual final consumption. Gross fixed capital formation rose by 0.3%. In external trade, exports were down by 1.5% and imports by 1.4%.
Almost 5% growth in 2019
According to KSHʼs first estimation, the value of GDP was HUF 46.787 trillion at current prices, its volume grew by 4.9%. The growth was 4.9% according to seasonally and calendar adjusted and reconciled data, too.
From the production approach, value-added increased by 21% in construction, by 5.0% in industry and by 4.2% in services and it diminished by 0.3% in agriculture.
Services contributed to the growth of GDP by 2.3 percentage points and industry and construction by 1 percentage point each.
From the expenditure approach, the actual final consumption of households was up by 4.4% and the actual final consumption of the government by 2%, and as a total result of these, actual final consumption became 4.1% higher. Gross capital formation rose by 9.5%, within which gross fixed capital formation by 15%. Exports grew by 6.0% and imports by 6.9%.
From the expenditure approach, actual final consumption raised the GDP growth rate by 2.8 percentage points and gross capital formation by 2.6 percentage points. The balance of external trade as a whole slowed down the growth of economic performance by 0.4 percentage points.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.