According to preliminary data for July by the Hungarian Central Statistical Office (KSH), the volume of industrial production was 4.8 percent higher compared to the level one year ago. This figure has been an outstanding one within the past couple of months. Thus, the Government’s aspiration to turn Hungary into a European production hub is about to be fulfilled.

Measures such as the cutting of red tape and policies aimed at boosting competitiveness, investment and the industry have contributed to reaching this goal.

The workday-adjusted index was up by 2.5 percent. On a monthly basis – except for one month – the sector expanded for the entire year, with growth of 0.3 percent in July. The recently published statistical data substantiate the Government’s efforts which aim to buoy the country’s economy through strengthening productive sectors and facilitating steady employment growth.

Higher demand on Hungary’s export markets and the upswing of vehicle manufacturing – the latest manifestation of which was the opening of a new production facility at the Audi site in Győr at the end of June -- are believed to have contributed to the increase in industrial output. Foreign trade data for July, which were also published earlier today and which show the pace of expansion to be similar to that of the industrial sector, as well as detailed second quarter GDP data confirm the expectation that the Hungarian economy is about to enter a stable and sustainable growth path. As statistics imply, in comparison to the previous year growth is picking up concerning investment, domestic consumption and services along with exports, the traditional growth engine. Higher household consumption expenditure – which was facilitated by savings thanks to public utility tariff cuts and benign inflation – is also thought to have contributed to good industrial data.

(Ministry for National Economy)