GDP rises by 1.6%
The volume of gross domestic product was 1.6% higher in Hungary in the 4th quarter of 2016 than in the corresponding period of the previous year. The primary contributors to the growth were market-based services and agriculture. According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 1.5% compared to the corresponding quarter of the previous year and by 0.4% compared to the previous quarter. In 2016, GDP rose by 2.0%.
In the 4th quarter of 2016 compared to the corresponding period of the previous year:
The volume of GDP was up by 1.6%. Compared with the 4th-quarter figure issued in the flash estimate, the second estimate was unchanged.
Production approach:
The value added of industry decreased by 0.8%, within which that of manufacturing by 0.6% compared to the same period of the previous year. Within manufacturing, the most significant growth was measured for the manufacture of computer, electronic and optical products, while value added in the manufacture of transport equipment went down out of divisions with relatively large weight. Within industry the performance of non-industrial activities became smaller. (Enterprises classified into industry may perform not only industrial but also other, e.g. commercial activities.)
The performance of construction continued to lessen, by 13% in the 4th quarter. It was civil engineering that fell the most within the division.
The value added of agriculture grew by 18%.
The gross value added of services was up by 3.1% in total. The value added of wholesale and retail trade as well as accommodation and food service activities rose by 4.8%, within which it was accommodation and food service activities that augmented largely. The performance of transportation and storage grew by 2.5%. Owing to the growth of computer programming, consultancy and related activities the value added of information and communication became 4.3% higher. The total value added of professional, scientific, technical and administrative activities increased by 6.5%, within which it was the growth of administrative and support service activities that was significant. The total performance of public administration, education and health was up by 1.8%. The performance of financial and insurance activities was lowered by 1.5%, which was due to the decrease of financial intermediation services indirectly measured and a deterioration in the balance of commissions and fees.
Services contributed by 1.7 percentage points and agriculture by 0.6 percentage point to the 1.6% growth of gross domestic product in the 4th quarter of 2016. Within services it was the contribution of wholesale and retail trade, accommodation and food service activities and professional, scientific and technical activities as well as administrative and support service activities (0.5 percentage point each) that was the most significant. Industry lowered the GDP growth rate by 0.2 percentage point and construction did so by 0.5 percentage point.
Table 1: Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year=100.0%)
| NACE | Industries | 2015 | 2016 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| IV | IR | IIR | IIIR | IV | ||
| A | Agriculture, forestry and fishing | 96.4 | 107.7 | 120.6 | 118.0 | 117.9 |
| B–E | Mining and quarrying, manufacturing and electricity | 109.5 | 99.2 | 103.7 | 101.1 | 99.2 |
| C | Of which: manufacturing | 110.2 | 99.0 | 103.4 | 101.0 | 99.4 |
| F | Construction | 99.1 | 72.4 | 75.8 | 87.7 | 87.0 |
| G–T | Services, total, of which: | 101.7 | 103.0 | 103.3 | 102.8 | 103.1 |
| G+I | Wholesale and retail trade, accommodation and food service activities | 104.1 | 106.3 | 107.7 | 105.5 | 104.8 |
| H | Transportation and storage | 101.8 | 102.3 | 102.0 | 103.3 | 102.5 |
| J | Information and communication | 101.0 | 104.4 | 104.7 | 101.6 | 104.3 |
| K | Financial and insurance activities | 102.0 | 99.7 | 98.1 | 99.3 | 98.5 |
| L | Real estate activities | 102.9 | 101.2 | 100.7 | 101.0 | 101.9 |
| M–N | Professional, scientific, technical and administrative activities | 103.4 | 106.3 | 106.0 | 106.2 | 106.5 |
| O–Q | Public administration, education, health and social work activities | 99.1 | 100.8 | 101.4 | 101.1 | 101.8 |
| R–T | Arts, entertainment and other services | 99.4 | 100.8 | 102.8 | 100.9 | 101.0 |
| GDP, total (at purchasers’ prices) | 103.4 | 101.1 | 102.8 | 102.2 | 101.6 | |
R Revised data.
Expenditure approach:
The actual final consumption of households was up by 3.9% compared to the same period of the previous year. Household final consumption expenditure, representing the largest proportion of the components of the actual final consumption of households, grew by 5.1%. Volume increases were measured in all the groups of expenditure within household final consumption expenditure. Out of groups of expenditure with large weight, the volume of other services, transport as well as furnishings and households equipment rose at rates exceeding the average. The (domestic) consumption expenditure of households realised on the territory of Hungary increased by 5.1%.
The volume of social transfers in kind from the government diminished by 2.7% and that of the actual final consumption of the government by 5.0%. The volume of social transfers in kind from NPISHs grew by 6.9%.
As a result of the above trends, actual final consumption rose by 2.5%.
Gross fixed capital formation fell by 19.6% – remaining crucially consistent with the change of EU budget cycles –, which affected the investments of the government sector considerably. The volume of investments both in machinery and equipment and in construction decreased significantly. Investment activity was low in the majority of sections. Out of industries having a relatively large weight, the investment performance of transportation and storage, public administration and defence, agriculture, energy industry as well as information and communication was reduced, while that of manufacturing, wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as real estate activities grew.
Gross capital formation lessened by 3.2% compared to a year earlier.
Domestic use as a whole rose by 1.1% in the 4th quarter.
Table 2: Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year=100.0%)
| Items of use | 2015 | 2016 | |||
|---|---|---|---|---|---|
| quarter | |||||
| IV | IR | IIR | IIIR | IV | |
| Household final consumption expenditure | 103.8 | 104.8 | 105.2 | 104.5 | 105.1 |
| Social transfers in kind from government | 102.1 | 100.8 | 103.2 | 99.6 | 97.3 |
| Social transfers in kind from NPISHs | 106.1 | 105.8 | 105.8 | 108.5 | 106.9 |
| Actual final consumption of households | 103.5 | 104.2 | 104.8 | 103.7 | 103.9 |
| Actual final consumption of government | 104.7 | 101.8 | 106.4 | 97.9 | 95.0 |
| Actual final consumption, total | 103.7 | 103.8 | 105.1 | 102.9 | 102.5 |
| Gross fixed capital formation | 106.4 | 89.8 | 80.7 | 90.1 | 80.4 |
| Changes in inventoriesa) | x | x | x | x | x |
| Gross capital formation, total | 96.4 | 101.8 | 84.0 | 98.7 | 96.8 |
| Domestic use, total | 101.8 | 103.4 | 100.0 | 101.8 | 101.1 |
| Exports, of which: | 108.8 | 104.6 | 110.3 | 105.2 | 103.1 |
| Exports of goods | 109.5 | 104.1 | 109.8 | 104.9 | 102.6 |
| Exports of services | 106.4 | 106.7 | 112.3 | 106.4 | 105.1 |
| Imports, of which: | 107.3 | 107.4 | 107.9 | 105.1 | 102.7 |
| Imports of goods | 106.5 | 107.7 | 108.0 | 105.2 | 104.1 |
| Imports of services | 111.3 | 105.9 | 107.4 | 104.8 | 95.7 |
| External trade balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 103.4 | 101.1 | 102.8 | 102.2 | 101.6 |
R Revised data.
a) For these items the volume index is not applicable.
In the external trade of the national economy a surplus of 764 billion forints was generated at current prices. Exports were up by 3.1% and imports by 2.7%. In trade in goods, exports grew by 2.6% and imports by 4.1%. Within the external trade of the national economy the exports of services (including tourism) increased by 5.1%, while their imports were cut by 4.3% compared to a year earlier.
Actual final consumption contributed by 1.7 percentage points to the 1.6% growth of gross domestic product in the 4th quarter of 2016. Gross capital formation slowed down the growth of economic performance by 0.7 percentage point. The balance of external trade as a whole increased the GDP growth rate by 0.6 percentage point.
In the 4th quarter of 2016 compared to the previous quarter:
According to seasonally and calendar adjusted data the performance of the economy increased by 0.4%. (Comparison to the previous quarter is always based on seasonally and calendar adjusted data.)
From the production approach, gross value added was up by 0.4% in agriculture, by 0.7% in industry, by 1.1% in construction and by 0.7% in services.
From the expenditure approach, household final consumption expenditure rose by 1.2%, while social transfers in kind from the government lessened by 0.3% and the actual final consumption of the government by 0.4% out of the components of actual final consumption. Gross fixed capital formation became 0.5% lower. In external trade, exports grew by 0.6% and imports were reduced by 0.6%.
In 2016 compared to the previous year:
The volume of gross domestic product increased by 2.0%. According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 1.8% compared to the previous year.
From the production approach, gross value added was up by 17% in agriculture, by 3.0% in services and by 0.8% in industry and fell by 18% in construction.
Services contributed by 1.6 percentage points, agriculture by 0.6 percentage point and industry by 0.2 percentage point to the growth of GDP. Construction lowered the growth by 0.6 percentage point.
From the expenditure approach, the actual final consumption of households was up by 4.2%, and the actual final consumption of the government practically stagnated (+0.1%). As a result of these two items, actual final consumption rose by 3.6%. Gross capital formation decreased by 5.0%, within which gross fixed capital formation by 15%. Exports grew by 5.8% and imports by 5.7%.
From the expenditure approach, actual final consumption increased the GDP growth rate by 2.5 percentage points and the balance of external trade as a whole did so by 0.6 percentage point. Gross capital formation slowed down the growth of economic performance by 1.1 percentage points.