Investments increase by 27% in 2nd quarter 2017
The volume of investments in the national economy was 27% higher in the 2nd quarter of 2017 than the low base in the same period of the previous year. Investment performance rose outstandingly similarly to the previous quarter, which affected almost all areas of the national economy. The considerable growth was equally due to the recovery of works connected with projects financed from funds of the 2014–2020 EU budget cycle and to the expansion in the developments of enterprises. Investments were up by 25% in the first half of 2017 compared to a year earlier.
In the 2nd quarter of 2017 compared to the previous quarter:
The seasonally adjusted volume of investments rose by 6.3%.
In the 2nd quarter of 2017 compared to the same period of the previous year:
The volume of investments was up by 27%, within which that of investments in machinery and equipment by 21% and the volume of construction investments by 33%.
A growth of 29% was recorded in the group of enterprises employing at least 50 persons and realising almost six-tenths of investment performance and of 56% among budgetary units, realising more than one-tenth of the volume.
Investment activity rose in almost every section. Out of areas with a relatively large weight the highest increase (77%) was recorded in the volume of investments in transportation and storage, first of all owing to the growth of EU-financed bicycle path and motorway constructions and public road renovations.
Developments of manufacturing, representing 28% of investments in the national economy, grew – continuing the permanent expansion lasting for more than one year – by 9.2%. Developments went up to the highest extent in the manufacture of computer, electronic and optical products and in the manufacture of transport equipment, having a significant weight. Substantial volume rises were measured also in the manufacture of basic pharmaceutical products and pharmaceutical preparations, food products, beverages and tobacco products and electrical equipment as well as in textile industry, having the lowest weight in manufacturing output.
The volume of investments of real estate activities, considered as the third largest investor, was up by 10%, increases being observed in dwelling constructions as well as in the construction of facilities that can be leased for logistical and industrial purposes and in office building developments.
The investment performance of wholesale and retail trade, and repair of motor vehicles and motorcycles – after an expansion lasting for one and a half years – increased again (by 14%), first of all as a result of upgrades and renovations of chain stores, active in retail trade.
Investments of agriculture, forestry and fishing grew by 26%, mostly due to the acquisitions of domestically produced agricultural machinery.
In mostly publicly financed areas, investments also expanded at a rate above the average, principally due to the resumption of EU-funded developments. The 94% increase in public administration and defence and compulsory social security was influenced among others by expenditures on national border protection. The volume of investments was 43% more in education and 66% higher in human health and social work activities compared to a year earlier.
Out of the areas with relatively small weight in the national economy, investments rose outstandingly – primarily due to expenditures in the current period on exploratory drilling connected with natural gas research activities – in mining and quarrying (approximately four times higher) as well as in arts, entertainment and recreation, where large-scale investments connected with high-performance sports primarily continued to cause investments in new tangible assets to rise by 71%. The investment performance in information and communication increased (by 68%) partly due to developments related to broadcasting and programme production.
In accommodation and food service activities hotel constructions and renovations in parallel with an increase in the number of tourism nights contributed the most to the 21% rise of the investment volume. Investments in construction – partly as an effect of the growth of production – were up by 20%. The 15% expansion in administrative and support service activities was mainly due to growing motor vehicle imports by leasing companies.
The volume of investments decreased by 7.2% in electricity, gas, steam and air conditioning supply – because of power plant developments completed earlier on – and by 22% in water supply and waste management.
Investment outlay of national economy
| Section | Quarter 2 of 2017 | First half of 2017 | ||
|---|---|---|---|---|
| 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 | 1 515 292 | 126.8 | 2 547 983 | 125.4 |
| Of which: | ||||
| agriculture, forestry and fishing | 85 985 | 125.6 | 150 524 | 130.4 |
| manufacturing | 431 104 | 109.2 | 797 685 | 116.6 |
| wholesale and retail trade, repair of motor vehicles and motorcycles | 94 134 | 114.4 | 167 407 | 115.9 |
| transportation and storage | 229 761 | 176.7 | 334 596 | 166.0 |
| real estate activities | 209 355 | 110.2 | 352 576 | 109.9 |
| public administration and defence; compulsory social security | 96 633 | 194.3 | 139 736 | 159.3 |