Investment volume up 10.8% y.o.y. in Q2


In the second quarter of 2021, the volume of investment activity increased by 10.8% compared to the same period of the previous year, according to data by the Central Statistical Office KSH).

Construction investments representing 57% of the performance value of investments increased by 3.2%, while investments in machinery and equipment, accounting for more than four-tenths of investments, grew strongly by 24%. Within machinery investments, the volume of both domestically produced and imported machinery increased significantly.

Among enterprises with at least 50 employees, which account for 57% of investment output, the volume of developments rose by 13% for the first time since the downturn starting in the second quarter of 2020, partly due to the resumption of projects temporarily halted due to the coronavirus pandemic, KSH explains.

At the same time, for the budgetary units, which accounted for 13% of investments, development was essentially stagnant. Central government bodies increased their investment compared to the base period, while developments at local governments decreased.

Investment volume expanded in most sections of the national economy over the period. Manufacturing, which accounts for 26% of investment in the national economy and is the largest investor, grew by 11% compared to Q2 2020, making it the largest contributor to investment volume growth, by 2.8 percentage points (pp). Performance increased in almost all subsections, including in the large weight representing manufacture of vehicles, and the food industry, however a decrease has been measured in the largest weight carrying manufacture of electrical equipment.

The performance of real estate activities, the second-largest investor, accounting for 17% of developments in the national economy moderately increased by 4.3% in the second quarter, raising the volume change of national investments by 0.8 pp. Dwelling constructions held back, while developments in business facilities (e.g. warehouses, office buildings) increased the volume change.

Investment volume in transport and storage increased by 14% following the decline registered in the previous quarters, with the positive performance mainly driven by road and railway-related public developments. This area increased investment volume growth by 2.2 pp over the period.

The 49% increase in the volume of investment in wholesale and retail trade and repair of motor vehicles and motorcycles also raised the performance value of national investments (by 2.3 pp). In this case, there was a sharp increase in the developments of the retail trade (within it mainly in the developments of retail sale in non-specialized stores with food, beverages or tobacco predominating) in the current period.

The section of arts, entertainment and recreation increased the volume change of investments outstandingly, by 2.2 pp, as developments in this field expanded by almost two-third. Besides gym and swimming pool constructions spa developments also contributed to the expansion.

The investment performance of agriculture was again significantly below the base, by 7.5%, the area slightly held back the volume change of investments in the national economy, by 0.4 pp. The moderate developments of large enterprises dealing with animal production played a role in the setback.

The seasonally adjusted volume of investments increased by 3.6% compared to the previous quarter. Within it the seasonally adjusted volume of construction investments increased to a smaller degree, by 2.3%, that of machinery and equipment grew by a sharp 7.1%. Thanks to the significant growth of investment in machinery and equipment the seasonally adjusted investment volume surpassed its highest level previously recorded, that of the third quarter of 2019, KSH reports.

Gov't to Present EU-wide Support Scheme for EV Purchases in ... Analysis

Gov't to Present EU-wide Support Scheme for EV Purchases in ...

Gov't to Call HUF 75 bln Tender to Support Innovation by SME... Government

Gov't to Call HUF 75 bln Tender to Support Innovation by SME...

Óbuda Uni Planning Technology and Innovation Park Innovation

Óbuda Uni Planning Technology and Innovation Park

White Raven Skybar, Laurent-Perrier Champagnes Enter Special... Drinks

White Raven Skybar, Laurent-Perrier Champagnes Enter Special...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.