GDP rises by 3.2%
The volume of gross domestic product was 3.2% higher in Hungary in the 2nd quarter of 2017 than in the corresponding period of the previous year. The primary contributor to the growth was market-based services. According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 3.5% compared to the corresponding quarter of the previous year and by 0.9% compared to the previous quarter. In the 1st half of 2017 the volume of GDP grew by 3.6% compared to a year earlier.
In the 2nd quarter of 2017 compared to the corresponding period of the previous year:
The volume of GDP was up by 3.2%. Compared with the 2nd-quarter figure issued in the flash estimate, the second estimate was unchanged.
Production approach:
The value added of industry grew by 3.0%, within which that of manufacturing by 3.6% compared to the same period of the previous year. Within manufacturing, all branches with relatively large weight expanded with exception of the manufacture of transport equipment. Within industry, the increase 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 29%. The highest increase within the division was recorded for civil engineering.
The value added of agriculture decreased by 13% compared to the high base a year earlier.
The gross value added of services was up by 2.8% in total. The total value added of professional, scientific, technical and administrative activities expanded by 6.4%, within which it was the increase of administrative and support service activities that was substantial. The value added of information and communication became 6.2% higher. The value added of wholesale and retail trade as well as accommodation and food service activities rose by 5.8%. The performance of transportation and storage grew by 2.2%. The performance of financial and insurance activities became 1.2% higher, namely, fees and commissions were up due to the growing stocks of loans and deposits. The total performance of public administration, education and health was down by 0.6%.
Services contributed by 1.5 percentage points, industry by 0.7 percentage point and construction by 0.8 percentage point to the 3.2% growth of gross domestic product in the 2nd quarter of 2017. Within services it was the contribution of wholesale and retail trade and accommodation and food service activities and the total contribution of professional, scientific and technical activities as well as administrative and support service activities (0.6 percentage point and 0.5 percentage point respectively) that were the most significant. Agriculture lowered the GDP growth rate 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 | 2016 | 2017 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| II | III | IV | IR | II | ||
| A | Agriculture, forestry and fishing | 120.6 | 118.0 | 117.9 | 94.0 | 87.1 |
| B–E | Manufacturing, mining and quarrying and other industry | 103.7 | 101.1 | 99.2 | 106.8 | 103.0 |
| C | Of which: manufacturing | 103.4 | 101.0 | 99.4 | 107.9 | 103.6 |
| F | Construction | 75.8 | 87.7 | 87.0 | 124.7 | 128.6 |
| G–T | Services, total, of which: | 103.3 | 102.8 | 103.1 | 102.9 | 102.8 |
| G+I | Wholesale and retail trade and accommodation and food service activities | 107.7 | 105.5 | 104.8 | 105.3 | 105.8 |
| H | Transportation and storage | 102.0 | 103.3 | 102.5 | 102.1 | 102.2 |
| J | Information and communication | 104.7 | 101.6 | 104.3 | 102.6 | 106.2 |
| K | Financial and insurance activities | 98.1 | 99.3 | 98.5 | 99.9 | 101.2 |
| L | Real estate activities | 100.7 | 101.0 | 101.9 | 101.6 | 101.2 |
| M–N | Professional, scientific, technical and administrative activities | 106.0 | 106.2 | 106.5 | 106.4 | 106.4 |
| O–Q | Public administration, education and health and social work activities | 101.4 | 101.1 | 101.8 | 101.1 | 99.4 |
| R–T | Arts, entertainment and other services | 102.8 | 100.9 | 101.0 | 102.3 | 101.8 |
| GDP, total (at purchasers’ prices) | 102.8 | 102.2 | 101.6 | 104.2 | 103.2 | |
R: Revised data.
Expenditure approach:
The actual final consumption of households was up by 3.3% 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 4.7%, within which volume increases were measured in almost all the groups of expenditure. Out of the groups of expenditure, the volume rose at rates exceeding the average in the case of furnishings and households equipment, food, restaurants and hotels as well as other services and below the average in the case of recreation and culture. The (domestic) consumption expenditure of households realised on the territory of Hungary increased by 4.2%.
The volume of social transfers in kind from the government diminished by 2.8% and that of the actual final consumption of the government by 1.8%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) became 2.1% higher.
As a result of the above trends, actual final consumption rose by 2.6%.
Gross fixed capital formation was substantially, 21% higher than the low base in the same period of the previous year. The volume of investments in construction and in machinery and equipment both went up significantly. Investment activity was high in the vast majority of industries and in all industries having relatively large weight.
Gross capital formation increased by 13% compared to a year earlier.
Domestic use as a whole rose by 4.7% in the 2nd 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 | |||||
| II | III | IV | I | II | |
| Household final consumption expenditure | 105.2 | 104.5 | 105.1 | 103.5 | 104.7 |
| Social transfers in kind from government | 103.2 | 99.6 | 97.3 | 98.0R | 97.2 |
| Social transfers in kind from NPISHs | 105.8 | 108.5 | 106.9 | 105.3 | 102.1 |
| Actual final consumption of households | 104.8 | 103.7 | 103.9 | 102.6R | 103.3 |
| Actual final consumption of government | 106.4 | 97.9 | 95.0 | 94.0R | 98.2 |
| Actual final consumption, total | 105.1 | 102.9 | 102.5 | 101.4R | 102.6 |
| Gross fixed capital formation | 80.7 | 90.1 | 80.4 | 128.4 | 121.2 |
| Changes in inventoriesa) | x | x | x | x | x |
| Gross capital formation, total | 84.0 | 98.7 | 96.8 | 115.5R | 112.7 |
| Domestic use, total | 100.0 | 101.8 | 101.1 | 104.1 | 104.7 |
| Exports, of which: | 110.3 | 105.2 | 103.1 | 109.4 | 103.5 |
| Exports of goods | 109.8 | 104.9 | 102.6 | 109.4 | 104.5 |
| Exports of services | 112.3 | 106.4 | 105.1 | 109.4 | 99.4 |
| Imports, of which: | 107.9 | 105.1 | 102.7 | 110.0 | 105.1 |
| Imports of goods | 108.0 | 105.2 | 104.1 | 110.7 | 105.7 |
| Imports of services | 107.4 | 104.8 | 95.7 | 106.4 | 102.3 |
| External trade balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 102.8 | 102.2 | 101.6 | 104.2 | 103.2 |
a) For these items the volume index is not applicable.
R: Revised data.
In the external trade of the national economy a surplus of 988 billion forints was generated at current prices. Exports were up by 3.5% and imports by 5.1%. In trade in goods, exports grew by 4.5% and imports by 5.7%. Within the external trade of the national economy, the exports of services (including tourism) decreased by 0.6%, while their imports went up by 2.3% compared to a year earlier.
Actual final consumption contributed by 1.8 percentage points and gross capital formation by 2.3 percentage points to the 3.2% growth of gross domestic product in the 2nd quarter of 2017. The balance of external trade as a whole slowed down the growth of economic performance by 1.0 percentage point.
In the 2nd quarter of 2017 compared to the previous quarter:
According to seasonally and calendar adjusted and reconciled data the performance of the economy increased by 0.9%. (Comparison to the previous quarter is always based on seasonally and calendar adjusted and reconciled data.)
From the production approach, gross value added grew by 2.9% in industry, by 7.1% in construction and by 0.7% in services and lessened by 0.3% in agriculture.
From the expenditure approach, household final consumption expenditure was up by 1.1% and the actual final consumption of the government by 0.8%, while social transfers in kind from the government lessened by 0.5% out of the components of actual final consumption. Gross fixed capital formation rose by 4.3%. In external trade, exports were cut by 0.1% and imports by 0.9%.