Investments in the manufacturing industry, which constitute one-third of total investments in the national economy, increased by 5.3 percent in the period October-December 2012 compared to one year ago. Investments, however, decreased with regard to the entire national economy: according to the latest flash report of the Hungarian Central Statistical Office (KSH), in Q4 2012 the volume of investments was down by 7.9 percent in comparison to the corresponding period of 2011.

Manufacturing industry investments registered growth in spite of last year’s high basic figures. Within this sub-sector, investment growth was significant in vehicle manufacturing, the manufacturing of machinery and equipment, in the electrical equipment segment as well as that of basic metals and fabricated metal products.

Along with manufacturing industry investment, growth was substantial in the field of public administration, defence and compulsory insurance: the volume increase of investments was 26.1 percent, which was partly the consequence of the construction of reservoirs, dams and drainage canals.
Among significant national economy sectors, the volume of investments regarding transport and storage was 14.9 percent lower in the last quarter of 2012 compared to the same period of the previous year, while real estate investments were down by 6 percent. The decrease of investments related to education was due to the completion of universities’ large investment projects co-financed by the EU. Contraction was also significant in the field of human healthcare and welfare services as well as financial insurance services (32.8 percent and 59.1 percent, respectively).

As far as the entire year of 2012 is concerned, investments in the national economy declined by 5.2 percent compared to 2011. In the significant manufacturing industry, on the other hand, the opposite trend prevailed: the volume of investments increased by 4.9 percent. Year-on-year, the significant decline in the sub-sectors with the most severe investment decrease (38.6 percent regarding electricity, gas and steam supply and 37.3 percent in the case of financial insurance services) was attributable to last year’s large-scale investment projects and the basis effect resulting thereof.

The volume of investments in the info-communication sector was up by 10.9 percent, thanks to continuous network development and the switch to digital reception.

(Ministry for National Economy)