Hungary Investment Volume up 7.7% y.o.y. in Q3
In the third quarter of 2022, the volume of developments in Hungary increased by 7.7% compared to the same period of the previous year, and by 1.9% compared to the previous quarter, according to data published by the Central Statistical Office (KSH).
Compared to Q3 2021, construction investments representing almost two-thirds of the performance value of investments increased by 10%, and investments in machinery and equipment, accounting for more than one-third of investments grew by 3.3%. Within machinery investments, the volume of imported machinery grew, while that of domestically produced ones decreased.
Among enterprises with at least 50 employees, accounting for 56% of investment output, the volume of developments grew significantly, by 10%, with developments of foreign-owned enterprises playing a prominent role. At the same time at budgetary units, which accounted for 11% of investments, the performance dropped by about one-tenth. While central government bodies saw their developments decreasing significantly, purchases of fixed assets by local governments slightly increased.
Investment volume in other categories (enterprises with fewer than 50 employees, private entrepreneurs, non-profit enterprises as well as households) grew by 9.5%, the statistics office notes.
Volume changes in investments over the reference period differed between sectors. Developments in manufacturing, representing the largest proportion (30%) of developments in the national economy, increased greatly (by 31%) in the third quarter, thus this area significantly supported the increase in the volume of investments.
This was primarily due to the high-volume projects started in the previous periods in the field of electrical equipment manufacturing, but the revival of investments in vehicle production also played a role in the growth.
Developments in the third major subsection, the manufacture of food products, also significantly exceeded the previous year’s value, in contrast, we measured a decrease in the production of basic metals and fabricated metal products.
The investment performance of real estate activities, the second largest investor, accounting for one-fifth of developments in the national economy, grew significantly, by 17%, primarily due to the large increase in dwelling constructions as well as property renovations, which represent, jointly, a decisive weight.
The decrease (-7.2%) typical of the previous quarter in the investment volume in transportation and storage continued, with the negative performance still mainly driven by a slowdown in public infrastructure developments.
In the field of wholesale and retail trade investments increased by 3.7%, due to the fact – among others – that enterprises operating in wholesale trade increased their investments.
After the significant expansion of the past quarters, the investment performance in agriculture, forestry, and fishing decreased by 5.7% compared to the otherwise high base, where the fact that larger companies dealing with stock-raising or crop production reduced their investment expenditure also played a role, according to KSH.
In the sixth-largest weight representing energy industry section investments increased greatly, by about 45%, primarily due to the higher expenditure of public investments in the reference period.
Manufacturing contributed the most (by 7.6 percentage points) to the 7.7% volume increase of the national economy’s investments in the third quarter of 2022.
Investment activity also grew due to the investment performance in real estate activities, energy industry, and trade (by 3.2, 1.2, as well as 0.2 percentage points).
At the same time performance decreases in transportation and storage, and agriculture held back the volume increase (by 1.1 as well as 0.3 percentage points).
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