Published on: 7 June 2017

GDP rises by 4.2%

The volume of gross domestic product was 4.2% higher in Hungary in the 1st quarter of 2017 than in the corresponding period of the previous year. The primary contributors to the growth were market-based services and industry. According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 3.8% compared to the corresponding quarter of the previous year and by 1.3% compared to the previous quarter.

In the 1st quarter of 2017 compared to the corresponding period of the previous year:

The volume of GDP was up by 4.2%. Compared with the 1st-quarter figure issued in the flash estimate, the second estimate is 0.1 percentage point higher.

Production approach:

The value added of industry grew by 6.8%, within which that of manufacturing by 7.8% compared to the same period of the previous year. Within manufacturing all of the areas with a relatively large weight expanded. Within industry the growth of the performance of non-industrial activities exceeded that of industrial production. (Enterprises classified into industry may perform not only industrial but also other, e.g. commercial activities.)

The performance of construction rose by 25%, within which the highest increase was recorded for civil engineering.

The value added of agriculture decreased by 6.3%.

The gross value added of services was up by 3.0% in total. The value added of wholesale and retail trade as well as accommodation and food service activities rose by 4.8%. The performance of transportation and storage grew by 2.0%. Owing to the growth of motion picture, video and television programme production activities, value added in information and communication became 4.9% higher. The total value added of professional, scientific, technical and administrative activities increased by 6.0%, within which it was the growth of professional, scientific and technical activities that was significant. The total performance of public administration, education and health was up by 1.6%. The performance of financial and insurance activities practically stagnated (–0.1%). The balance of fees and commissions of credit institutions improved, while financial intermediation services indirectly measured decreased.

Services contributed by 1.7 percentage points, industry by 1.6 percentage points and construction by 0.4 percentage point to the 4.2% growth of gross domestic product in the 1st quarter of 2017. Within services it was the contribution of wholesale and retail trade and 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. Agriculture lowered the GDP growth rate by 0.2 percentage point.

Table 1: Volume indices of production of gross domestic product (GDP)

(corresponding period of previous year=100.0%)

NACE Industries 2016 2017
quarter
I II III IV I
AAgriculture, forestry and fishing107.7120.6118.0117.993.7
B–EManufacturing, mining and quarrying and other industry99.2103.7101.199.2106.8
C Of which: manufacturing99.0103.4101.099.4107.8
FConstruction72.475.887.787.0124.6
G–TServices, total, of which:103.0103.3102.8103.1103.0
G+I Wholesale and retail trade and accommodation and food service activities106.3107.7105.5104.8104.8
H Transportation and storage102.3102.0103.3102.5102.0
J Information and communication104.4104.7101.6104.3104.9
K Financial and insurance activities99.798.199.398.599.9
L Real estate activities101.2100.7101.0101.9101.4
M–N Professional, scientific, technical and administrative activities106.3106.0106.2106.5106.0
O–Q Public administration, education and health and social work activities100.8101.4101.1101.8101.6
R–T Arts, entertainment and other services100.8102.8100.9101.0102.8
GDP, total (at purchasers' prices)101.1102.8102.2101.6104.2

Expenditure approach:

The actual final consumption of households increased by 2.5% 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 3.5%. Volume increases were measured in almost all the groups of expenditure within household final consumption expenditure. Out of groups of expenditure with large weight, the volume of furnishings and households equipment, transport as well as other services rose at rates exceeding the average. The (domestic) consumption expenditure of households realised on the territory of Hungary was up by 3.4%.

The volume of social transfers in kind from the government diminished by 3.0% and that of the actual final consumption of the government by 6.2%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) increased by 5.3%.

As a result of the above trends, actual final consumption rose by 1.2%.

Gross fixed capital formation was outstandingly, 28% higher than the low base in the same period of the previous year. The volume of investments both in construction and in machinery and equipment went up significantly. Investment performance grew in all of the dominant areas (manufacturing, real estate activities as well as transportation and storage).

Gross capital formation increased by 17% compared to a year earlier.

Domestic use as a whole rose by 4.1% in the 1st quarter.

Table 2: Volume indices of final use of gross domestic product (GDP)

(corresponding period of previous year=100.0%)

Items of use 2016 2017
quarter
I II III IV I
Household final consumption expenditure104.8105.2104.5105.1103.5
Social transfers in kind from government100.8103.299.697.397.0
Social transfers in kind from NPISHs105.8105.8108.5106.9105.3
Actual final consumption of households104.2104.8103.7103.9102.5
Actual final consumption of government101.8106.497.995.093.8
Actual final consumption, total103.8105.1102.9102.5101.2
Gross fixed capital formation89.880.790.180.4128.4
Changes in inventoriesa)xxxxx
Gross capital formation, total101.884.098.796.8116.7
Domestic use, total103.4100.0101.8101.1104.1
Exports, of which:104.6110.3105.2103.1109.4
Exports of goods104.1109.8104.9102.6109.4
Exports of services106.7112.3106.4105.1109.4
Imports, of which:107.4107.9105.1102.7110.0
Imports of goods107.7108.0105.2104.1110.7
Imports of services105.9107.4104.895.7106.4
External trade balance of goods and servicesa)xxxxx
Gross domestic product (GDP), total101.1102.8102.2101.6104.2

a) For these items the volume index is not applicable.

In the external trade of the national economy a surplus of 759 billion forints was generated at current prices. Exports were up by 9.4% and imports by 10%. In trade in goods, exports grew by 9.4% and imports by 11%. Within the external trade of the national economy the exports of services (including tourism) increased by 9.4% and their imports by 6.4% compared to a year earlier.

Actual final consumption contributed by 0.9 percentage point and gross capital formation by 2.9 percentage points to the 4.2% growth of gross domestic product in the 1st quarter of 2017. The balance of external trade as a whole raised the GDP growth rate by 0.4 percentage point.

In the 1st quarter of 2017 compared to the previous quarter:

According to seasonally and calendar adjusted and reconciled data the performance of the economy increased by 1.3%. (Comparison to the previous quarter is always based on seasonally and calendar adjusted and reconciled data.)

From the production approach, gross value added was up by 1.4% in industry, by 4.0% in construction and by 0.6% in services, at the same time, it fell by 13% in agriculture.

From the expenditure approach, household final consumption expenditure rose by 0.6%, while social transfers in kind from the government lessened by 0.6% and the actual final consumption of the government by 1.1% out of the components of actual final consumption. Gross fixed capital formation increased by 8.8%. In external trade, exports grew by 4.5% and imports by 7.4%.