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Investment Volume Climbs Almost 11% in Q2 from Low Base

MTI-Hungary Today 2021.08.31.

Investment volume in Hungary rose by an annual 10.8 percent in Q2, albeit from a low pandemic base, the Central Statistical Office (KSH) said on Tuesday.

Investments in machinery jumped by 23.9 percent and construction investments increased by 3.2 percent.

In a quarter-on-quarter comparison, investment volume rose a seasonally-adjusted 3.6 percent.

In absolute terms, Q2 investments reached 2,760 billion forints (EUR 7.9bn). Construction investments accounted for about 57 percent of the total.

Private sector investments increased by 13.0 percent to 1,580 billion forints, while public sector investments inched up 0.2 percent to 354 billion forints.

Never Before Seen Growth in Hungarian Economy: GDP Up Almost 18% in Q2
Never Before Seen Growth in Hungarian Economy: GDP Up Almost 18% in Q2

A year ago, Hungary’s GDP fell by an annual 13.6% in the second quarter, impacted by the coronavirus crisis.Continue reading

Manufacturing sector investments rose by 10.7 percent, construction sector investments jumped by 58.3 percent and investments in the commercial accommodations and catering sector increased by 19.8 percent.

Finance Minister: investment rate is one of the best in the European Union

Commenting on the data, Finance Minister Mihály Varga said investments were at a record high in Q2, with a 10.8 percent growth from the same period a year earlier.

The government’s development-friendly response to the economic fallout of the coronavirus crisis contributed to an uptick in the sector, he said in a Facebook post. The government allocated 4,000 billion forints to supporting investments last year, and will do the same in 2021, he said. Hungary’s 27.5 percent investment rate is one of the best in the European Union, he said.

Featured photo illustration by János Vajda/MTI