Published on: 30 May 2019

Investments increased by 26% in the 1st quarter of 2019

In the 1st quarter of 2019 the dynamic expansion characterizing the whole previous year further intensified, the volume of investments in the current quarter exceeded the same period of the previous year by 26%. The significant growth of investments was mainly the result of the developments conducted by enterprises, these strongly exceeded the previous period. Capacity increasing investments of manufacturing increased by 33% in the reference period.

In the 1st quarter of 2019, compared to the previous quarter:

The seasonally adjusted volume of investments increased – at a rate above the average growth of 2018 – by 6.8%.

In the 1st quarter of 2019 compared to the same period of the previous year:

The volume of investment activity rose by 26%, within which that of investments in machinery and equipment by 21%, the volume of construction investments by 32%.

Investment performance in the case of enterprises employing at least 50 people and realising more than half of investments increased– at a rate above the average growth of the previous quarters – by 38%, and grew by 27% in the case of budgetary units performing more than one-tenth of investments, compared to the high base of the previous year.

Investment activity increased in almost every sector of the national economy. Out of the sections carrying large weight, the highest investment volume growth (62%) was recorded in transportation and storage, where similarly to the previous periods infrastructural developments (road, motorway and railway constructions) funded by EU sources played a decisive role, but enterprises operating in local and long-distance passenger transport significantly increased their investments as well.

Developments in manufacturing, representing almost a third of investments in the national economy grew by the highest volume in the past eight years (by 33%). Developments grew in the overwhelming majority of its subsections, to the highest extent in the area of manufacture of electrical equipment, as a result of the strong international demand for the subsection’s products. The volume of investments grew outstandingly in the manufacture of chemicals and chemical products, manufacture of basic metals, manufacture of fabricated metal products, except machinery and equipment and in the food industry, too. Investments in manufacture of transport equipment – which gave more than one-fifth of the manufacturing developments in the current period – grew moderately compared to the average in manufacturing.

Investments volume in real estate activities, considered the second largest investor, grew at a rate below the national economy average (9.5%), mainly as a result of the more moderate growth in dwelling constructions. Investment in business facilities for rent (office buildings, retail units, warehouses, etc.) grew stronger. Investments of the three sections mentioned above delivered close to six-tenth of total investments.

Investment performance of wholesale and retail trade, and repair of motor vehicles and motorcycles representing the fourth highest share – following the previous period’s temporary decline – grew again in this quarter (by 7.3%), in which developments of enterprises engaged in retail sale of automotive fuel in specialised stores played a role.

State-financed investments – their total share exceeded one-tenth – increased typically at a rate below the average of the national economy. As a result, the mainly publicly financed areas – mostly due to developments financed by the EU – played a crucial, but compared to the previous periods, a less important role in the growth characterizing the whole national economy. In the field of public administration, defence and compulsory social security mostly due to law enforcement and national defence related investments, too, the volume increased by 11%, the section becoming the fifth highest contributor to investments. In education – mainly as a result of higher education related developments coming to an end – investments decreased by 1.1%. In human health and social work activities representing a relatively small weight the volume of investments was 23% higher than in the previous year, mainly due to in-patient care. The growth in the investments of the section of arts, entertainment and recreation (56%) was due to sports and culture related large-scale investments, the section’s investments exceeded by now the volume of investments in education and healthcare combined. In the field of water supply and waste management – partly as a result of projects related to waste treatment and disposal – the current quarter’s volume exceeded 2.3 times the low base period value.

Out of areas representing a relatively small weight, the volume of investments more than tripled in the second smallest share carrying mining and quarrying as a result of research activities related to mineral oil and natural gas extraction. Developments of financial and insurance activities more than doubled, in part as a result of IT equipment purchases. In the expansion of developments of the energy industry (73%) investments in power plants running on renewable energy sources played a part, too.

Investment outlay of national economy

Section 1st quarter of 2019 Quarters 1–4 of 2018
at current prices, million HUF volume index, corresponding period of previous year=100.0% at current prices, million HUF volume index, corresponding period of previous year=100.0%
Total1 687 589 126.4 8 495 037117.0
Of which*:
manufacturing519 053132.62 233 079106.3
real estate activities 271 712109.51 407 346117.3
transportation and storage 207 187162.41 429 407133.5
wholesale and retail trade, repair of motor vehicles and motorcycles93 989107.3444 788102.6
public administration and defence; compulsory social security91 036110.5559 967134.7
agriculture, forestry and fishing84 502121.7347 651108.3

*Data of the six largest weight carrying sections, based on investment performance of the 1st quarter 2019