Investment volume in Hungary rose 5.9 percent year-on-year in the fourth quarter, the lowest rate since Q4 2016, data released by the Central Statistical Office (KSH) on Friday show.
In absolute terms, investments came to 3,752.2 billion forints (EUR 11.1bn) during the period.
Construction investments increased by 8.9 percent, reaching 2,287.2 billion forints. Machinery investments climbed 1.6 percent and stood at 1,443.3 billion forints.
Manufacturing sector investments fell 5.5 percent, reaching 947.9 billion forints. Investments in vehicle manufacturing dropped by “a remarkable scale”, but were also down in most other segments, KSH said. Investments in machinery and equipment were up because of long-running high-value projects, it added.
Hungary Investment Volume Up 15 percent in Q3
Investments in the logistics sector were up 7.4 percent at 602.6 billion forints. Real estate investments increased by 15.6 percent to reach 730.9 billion forints.
Private sector investments were up 5.6 percent at 2,114.3 billion forints. Public sector investments grew 9.9 percent to 585.6 billion forints in Q4.
For the full year, investment volume rose 13.9 percent to 10,555.7 billion forints. The pace of growth slowed from 20.2 percent in 2018.
Construction investments increased 16.3 percent to 6,165.0 billion forints and machinery investments climbed 11.1 percent to 4.305.6 billion forints.
Manufacturing investments increased by 16.1 percent during the year, real estate investments by 16.9 percent and logistics investments by 15.1 percent.
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Investments in the central government sector, including defense and social security, were up 4.6 percent. In the commerce and vehicle repair segment, investments increased by just 1.9 percent, but in farm sector investment volume was up 8.5 percent.
Investments in the education sector edged down 0.1 percent, investments in health and social services increased by 9.6 percent and they jumped 32.7 percent in arts and entertainment.
Finance Minister Mihaly Varga said commenting on the KSH figures that the record-high investment carried out last year placed Hungary in the frontline in European Union comparison.
Investment growth is expected to help economic performance in the coming years, with developments to further boost growth once new production capacities are in place, he said.
“If investments are coming and outlooks are good then there is hope that more jobs will be created and capacities will expand in the years ahead,” he added.
Featured photo by Attila Balázs/MTI