Investments decrease in 4th quarter 2016
The volume of investments in the national economy was 24% lower in the 4th quarter of 2016 than in the same period of the previous year, within which the investments of budgetary units and entities narrowed to a higher extent. The fall was consistent with the change of EU budget cycles. In 2016 as a whole, investment performance was reduced by 20% compared to a year earlier. The volume of investments decreased in the majority of sections, but in areas less affected by EU funds growths were recorded, so investments grew by 7.0% in manufacturing and by 10.0% in wholesale and retail trade, and repair of motor vehicles and motorcycles at an annual level.
In quarter 4 of 2016 compared to the previous quarter:
According to seasonally adjusted volume indices, investments grew by 0.4%.
In quarter 4 of 2016 compared to the same period of the previous year:
The volume of investments decreased by 24%. This was consistent with outstanding investment performance being realised in the base period because of the completion of projects associated with the 2007–2013 period, while the majority of high-total-value projects for the 2014–2020 cycle settled in the reference period was not yet realised in fixed assets investments.
The volume of investments in machinery and equipment dropped by 18% and that of construction investments by 30%.
The volume of investment performance (primarily due to diminishing funds of state-owned enterprises) was 5.9% lower in the case of enterprises employing at least 50 persons and realising nearly six-tenths of investments and 71% lower in the case of budgetary units and entities, realizing one tenth of investments, compared to a year earlier.
Investment activity decreased in the majority of sections, to the highest extent (by 87%) – similarly to the previous quarters – in water supply, sewerage and waste management, the reason for which was the lack of EU-funded drinking water improvement, sewage treatment and waste management projects.
With the completion of developments at the end of 2015 realised from EU sources, investments decreased substantially in human health and social work activities (86%), in public administration and defence and compulsory social security (56%) and in education (58%).
The volume of investments in transportation and storage was down by 31%, which was influenced among others by lower development funds related to urban public transport and to railway transport.
Investments in electricity, gas, steam and air conditioning supply were 24% lower than in the base period, primarily due to the earlier completion of significant developments of the electricity distribution system.
Business units operating in construction reduced their investments by 15%. The investment performance of agriculture, forestry and fishing – principally due to the lower activity of private holdings – decreased by 5.2%.
Despite the general fall in investments, developments grew in a few sections. Out of these, investment performance – along with a rise in the volume of turnover of retail shops for a long time – went up by 14% in wholesale and retail trade, and repair of motor vehicles and motorcycles.
Developments in manufacturing, realising three-tenths of investments in the national economy, were – in spite of the completion of several outstanding large-scale investments in the previous periods – 2.3% higher than a year earlier. In more than the half of the sub-sections, investment activity increased. Investments in new fixed assets grew significantly in the manufacture of rubber, plastic and non-metallic mineral products, food products, beverages and tobacco products and wood and paper products and in printing and in the manufacture of basic pharmaceutical products and pharmaceutical preparations.
The volume of investments rose by 3.5% in real estate activities, which was the aggregate outcome of a notable growth in dwelling constructions and dwelling renovations and a moderate decrease in commercial real estate (e.g. office and warehouse) developments.
Investment outlay of national economy
| Section | Quarter 4 of 2016 | Quarters 1–4 of 2016 | ||
|---|---|---|---|---|
| at current prices,million forints | volume index, corresponding period of previous year=100.0% | at current prices,million forints | volume index, corresponding period of previous year=100.0% | |
| Total | 1 775 765 | 75.9 | 4 830 060 | 80.0 |
| Of which*: | ||||
| agriculture, forestry and fishing | 79 992 | 94.8 | 265 751 | 92.5 |
| manufacturing | 532 524 | 102.3 | 1 576 117 | 107.0 |
| wholesale and retail trade, repair of motor vehicles and motorcycles | 113 395 | 114.0 | 323 998 | 110.0 |
| transportation and storage | 267 263 | 68.9 | 621 177 | 57.9 |
| real estate activities | 270 190 | 103.5 | 657 206 | 95.1 |
| public administration and defence; compulsory social security | 86 737 | 44.1 | 221 025 | 56.1 |
* Data for the six sections with the highest performance value based on year 2016 data.
In 2016 compared to the previous year:
The volume of investments in the national economy went down by 20%, within which investments in machinery and equipment fell by 6.6% and construction investments by 32%.
Investment performance shrank by 8.9% in the case of enterprises employing at least 50 persons and representing nearly six-tenths of investments and by 63% in the case of budgetary units and entities.
Investments grew in four sections, to the highest extent (by 17%) in financial and insurance activities – with a relatively low share –, where acquisitions of new computing devices also enhanced investment performance.
The volume of investment performance grew in manufacturing (7.0%), realizing one-third of the total value, and in wholesale and retail trade, and repair of motor vehicles and motorcycles (10.0%), also representing significant weight.
The growth of investments in arts, entertainment and recreation (9.0%) resulted from investments relating to sports – first of all large-scale investments relating to competitive sports.
Investments decreased substantially in water supply, sewerage and waste management (81%), in human health and social work activities (75%), in public administration and defence and compulsory social security (44%) and in education (40%).
Out of sections with large weight, the investment performance of transportation and storage – primarily due to a decrease in road construction and rehabilitation, financed from EU sources – receded as well (by 42%).
Considering the whole year, investment activity went down in agriculture (7.5%), in professional, scientific and technical activities (19%) and in construction (11%).