GDP rises by 4.4%
The volume of gross domestic product was 4.4% higher in Hungary in the 4th quarter of 2017 than in the corresponding period of the previous year. The primary contributors to the growth were market-based services and construction. According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 4.9% compared to the corresponding quarter of the previous year and by 1.3% compared to the previous quarter. In 2017 the volume of GDP grew by 4.0% compared to a year earlier.
In the 4th quarter of 2017 compared to the corresponding period of the previous year:
The volume of GDP was up by 4.4%. Compared with the 4th-quarter figure issued in the flash estimate, the second estimate was unchanged.
In accordance with our revision policy, quarters 1–3 of 2017 were also revised. The raw volume indices of GDP were unchanged compared to the previous publication, but its internal structure from production and expenditure approach was slightly modified. As a result, seasonally and calendar adjusted volume indices changed.
Production approach:
The value added of industry grew by 2.9%, within which that of manufacturing by 3.6% compared to the same period of the previous year. Within manufacturing, all of the branches with relatively large weight were up with the exception of the manufacture of machinery and equipment n.e.c.
The performance of construction rose by 36%. The highest increase within the branch was recorded for civil engineering.
The value added of agriculture decreased by 11% compared to the high base a year earlier.
The gross value added of services was up by 3.6% in total. The total value added of professional, scientific, technical and administrative activities grew by 7.1%, within which it was the increase of professional, scientific and technical activities that was substantial. The value added of information and communication rose by 7.1%, that of transportation and storage by 6.8% and the value added of wholesale and retail trade as well as accommodation and food service activities by 6.6%. The performance of financial and insurance activities went up by 0.2%, which was due to the improving performance of insurance and those performing activities auxiliary to financial services and insurance activities. The total value added of public administration, education and health decreased by 2.5%.
Services contributed by 2.0 percentage points, construction by 1.4 percentage points and industry by 0.6 percentage point to the 4.4% growth of gross domestic product in the 4th quarter of 2017. Within services the total contribution of wholesale and retail trade and accommodation and food service activities and of professional, scientific, technical and administrative activities (0.7 percentage point and 0.5 percentage point respectively) was the most significant. Agriculture and public administration, education and health both lowered GDP growth rate by 0.4 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 | ||||||
| IV | IR | IIR | IIIR | IV | ||
| A | Agriculture, forestry and fishing | 111.2 | 96.1 | 89.7 | 91.3 | 88.5 |
| B–E | Manufacturing, mining and quarrying and other industry | 99.4 | 106.7 | 102.8 | 103.6 | 102.9 |
| C | Of which: manufacturing | 99.0 | 107.9 | 103.9 | 104.8 | 103.6 |
| F | Construction | 94.3 | 126.9 | 130.6 | 130.2 | 135.5 |
| G–T | Services, total, of which: | 103.4 | 103.0 | 102.8 | 103.6 | 103.6 |
| G+I | Wholesale and retail trade and accommodation and food service activities | 100.2 | 105.1 | 105.9 | 106.9 | 106.6 |
| H | Transportation and storage | 106.0 | 101.9 | 102.8 | 105.7 | 106.8 |
| J | Information and communication | 105.7 | 102.4 | 106.8 | 107.7 | 107.1 |
| K | Financial and insurance activities | 100.3 | 100.5 | 101.4 | 100.6 | 100.2 |
| L | Real estate activities | 103.4 | 101.5 | 101.1 | 102.5 | 104.2 |
| M–N | Professional, scientific, technical and administrative activities | 107.5 | 106.7 | 106.8 | 108.1 | 107.1 |
| O–Q | Public administration, education and health and social work activities | 102.9 | 101.1 | 98.4 | 97.8 | 97.5 |
| R–T | Arts, entertainment and other services | 102.5 | 103.9 | 104.2 | 106.3 | 105.3 |
| GDP, total (at purchasers' prices) | 101.9 | 104.3 | 103.3 | 103.9 | 104.4 | |
R: Revised data.
Expenditure approach:
The actual final consumption of households was up by 5.2% 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 5.6%, within which volume increases were measured in 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 products and services. The (domestic) consumption expenditure of households realised on the territory of Hungary increased by 5.4%.
The volume of social transfers in kind from the government grew by 3.4% and that of the actual final consumption of the government by 8.8%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) became 6.7% higher.
As a result of the above trends, actual final consumption rose by 5.7%.
Gross fixed capital formation went on increasing significantly, in the 4th quarter it was 13% higher than the base in the same period of the previous year. The volume of investments in construction and in machinery and equipment both went up substantially, that of investments in construction to a higher extent. A growth in investment activity was observed in the majority of industries having relatively large weight.
Gross capital formation increased by 4.4% compared to one year earlier.
Domestic use as a whole rose by 5.3% 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 | 2016 | 2017 | |||
|---|---|---|---|---|---|
| quarter | |||||
| IV | I | II | III | IV | |
| Household final consumption expenditure | 104.3 | 103.4 | 104.8 | 104.7 | 105.6 |
| Social transfers in kind from government | 99.4 | 98.0 R | 98.4 R | 103.6 R | 103.4 |
| Social transfers in kind from NPISHs | 108.7 | 104.7 | 101.5 | 114.9 | 106.7 |
| Actual final consumption of households | 103.6 | 102.5 R | 103.6 R | 104.8 | 105.2 |
| Actual final consumption of government | 95.7 | 90.4 R | 97.2 R | 101.8 R | 108.8 |
| Actual final consumption, total | 102.5 | 100.8 R | 102.7 R | 104.4 | 105.7 |
| Gross fixed capital formation | 85.0 | 121.6 | 121.0 R | 114.4 R | 113.1 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 100.7 | 130.0 R | 114.4 R | 117.7 R | 104.4 |
| Domestic use, total | 102.0 | 105.9 | 105.1 R | 107.6 R | 105.3 |
| Exports, of which: | 99.8 | 110.2 R | 105.4 R | 104.7 R | 108.3 |
| Exports of goods | 98.6 | 110.2 R | 106.0 R | 104.0 R | 107.1 |
| Exports of services | 104.5 | 110.5 R | 103.0 R | 107.2 R | 112.5 |
| Imports, of which: | 99.8 | 112.7 R | 107.6 R | 109.1 R | 109.7 |
| Imports of goods | 101.6 | 113.1 R | 107.7 R | 108.7 R | 110.6 |
| Imports of services | 91.7 | 110.9 R | 107.0 R | 110.7 R | 105.2 |
| External trade balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 101.9 | 104.3 | 103.3 | 103.9 | 104.4 |
a) For these items the volume index is not applicable.
R: Revised data.
In the external trade of the national economy a surplus of 652 billion forints was generated at current prices. Exports were up by 8.3% and imports by 9.7%. In trade in goods, exports grew by 7.1% and imports by 11%. Within the external trade of the national economy, the exports of services (including tourism) went up by 13% and their imports by 5.2% compared to a year earlier.
Actual final consumption contributed by 4.0 percentage points and gross capital formation by 0.9 percentage point to the 4.4% growth of gross domestic product in the 4th quarter of 2017. The balance of external trade as a whole slowed down the growth of economic performance by 0.5 percentage point.
In the 4th 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 grew by 6.3% in construction, by 1.8% in industry and by 0.9% in services and lessened by 1.8% in agriculture.
From the expenditure approach, household final consumption expenditure was up by 1.3%, the actual final consumption of the government by 2.6% and social transfers in kind from the government grew by 0.7% out of the components of actual final consumption. Gross fixed capital formation became 3.4% higher. In external trade, exports increased by 2.5% and imports by 0.4%.
In 2017 compared to the previous year:
The volume of gross domestic product grew by 4.0%. According to seasonally and calendar adjusted and reconciled data the performance of the economy rose by 4.2% compared to the previous year. The value of GDP was 38,183 billion forints at current prices in 2017.
From the production approach, gross value added increased by 32% in construction, by 3.9% in industry and by 3.3% in services and fell by 9.0% in agriculture.
Services contributed by 1.8 percentage points, construction by 1.0 percentage point and industry by 0.9 percentage point to the growth of GDP, while agriculture lowered the growth by 0.3 percentage point.
From the expenditure approach, the actual final consumption of households was up by 4.1%, the actual final consumption of the government decreased by 0.4%. As a result of these two items, actual final consumption was up by 3.4%. Gross capital formation became 15% higher, within which gross fixed capital formation 17% more. Exports grew by 7.1% and imports by 9.7%.
From the expenditure approach, actual final consumption increased GDP growth rate by 2.4 percentage points and gross capital formation by 3.0 percentage points. The balance of external trade as a whole slowed down the growth of economic performance by 1.4 percentage points.