The latest data by the Hungarian Central Statistical Office (KSH) shows that the volume of investments is increasing within the Hungarian economy for the first time since the last positive pre-crisis period in 2007.

In comparison to the corresponding period of the previous year, the increase was 4.6 percent in the first quarter of 2013, which figure exceeds the 2.6 percent growth registered in Q4 2007. On a quarterly basis – according to seasonally adjusted data – the volume of investments stagnated (-0.1 percent). The pace of investment growth was 5.8 percent and 2.4 percent for construction sector and for machinery and equipment sector investments, respectively, compared to Q2 2012.

Investment Volume Index, corresponding period of previous year = 100.0 (percent)

Source: Hungarian Central Statistical Office (KSH)

The volume of manufacturing sector investments, which constitute almost one-third of investments within the national economy, was only slightly down by 0.5 percent after a fall of 13.2 percent in the previous quarter. Within the sector, the decrease in investments was the consequence of last year’s investment upswing, i.e. a high basis, with regard to the significant divisions of pharmaceutical and vehicle manufacturing. On the other hand, growth was recorded in the field of rubber, plastics and non-metallic mineral product production as well as in machinery and equipment manufacturing.
As far as the transport and logistics sector is concerned, which constitute 14 percent of investments within the national economy, in the second quarter of 2013 the volume of investments gained 13.2 percent compared to the level registered in the same period of the previous year. The improvement was also attributable to the Government’s infrastructure development measures, including mainly the construction of minor roads, other road works and motorway construction, as well as the purchasing of vehicles in this sector.
In April-June 2013, the volume of investments was higher in a total of 11 sectors of the national economy compared to the second quarter of the previous year. Among these, the most dynamic growth was registered in the hotel and catering sector, in which the volume of investments skyrocketed by 80.2 percent, due to hotel renovation and reconstruction activities.

(Ministry for National Economy)