November 30, 2022
In the 3rd 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 (seasonally adjusted). The quickening was caused by the dynamic activity of households and businesses, while budgetary developments decreased. Manufacturing developments, having a dominant weight, as well as energy industry and housing investments increased the investments of the national economy, while transportation and storage, furthermore agriculture related investments held them back.
In the 3rd quarter of 2022, seasonally adjusted:
The seasonally adjusted volume of the national economy’s investments increased by 1.9% compared to the previous quarter. Within it the seasonally adjusted volume of construction investments increased by 4.5%, while investments in machinery and equipment decreased by 2.0%
| ● Investments in national economy: | 94.1% |
| ● Construction investments: | 84.7% |
| ● Investments in machinery and equipment: | 105.3% |
In the 3rd quarter of 2022 compared to the same period of the previous year:
The volume of investment activity increased by 7.7%. Within it, construction investments representing almost two-thirdsof the performance value of investments increased by 10%, 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, where developments of foreign-owned enterprises played 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 at other categories (enterprises with fewer than 50 employees, private entrepreneurs, non-profit enterprises as well as households) grew by 9.5%.
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.
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 tradeincreased 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, wherethe the fact that larger companies dealing with stock-raising or crop production reduced their investment expenditure also played a role.
In the 6th 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.
| Section | 3rd quarter of 2022 | Quarter 1-3 of 2022 | ||
|---|---|---|---|---|
| at current prices,billion HUF | volume change, compared to the corresponding period of the previous year, % | at current prices,billion HUF | volume change, compared to the corresponding period of the previous year, % | |
| Total | 4 013 | 7.7 | 9 978 | 7.9 |
| Of which*: | ||||
| manufacturing | 1 207 | 30.6 | 2 881 | 26.6 |
| real estate activities | 814 | 16.9 | 2 048 | 14.5 |
| transportation and storage | 552 | –7.2 | 1 269 | –7.6 |
| trade and repair of motor vehicles | 214 | 3.7 | 550 | –1.8 |
| agriculture, forestry and fishing | 186 | –5.7 | 479 | 10.2 |
| energy industry | 141 | 44.8 | 307 | 19.0 |
* Data of the six largest weight carrying sections, based on investment performance of the given quarter
Manufacturing contributed the most (by 7.6 percentage points) to the 7.7% volume increase of the national economy’s investments in the 3nd 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).
Source: Hungarian Central Statistical Office
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
