GDP rises by 4.4%
The volume of gross domestic product was 4.4% higher in Hungary in the 1st quarter of 2018 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 4.7% compared to the corresponding quarter of the previous year and by 1.2% compared to the previous quarter.
In the 1st quarter of 2018 compared to the corresponding period of the previous year:
The volume of GDP was up by 4.4%. Compared with the 1st-quarter figure issued in the flash estimate, the second estimate was unchanged.
Production approach:
The value added of industry grew by 2.0%, within which that of manufacturing by 2.5% 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 23%. There was a significant increase in all of the branches within the industry.
The value added of agriculture decreased by 0.6%.
Table 1: Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year=100.0%)
| NACE | Industries | 2017 | 2018 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| I | II | III | IV | I | ||
| A | Agriculture, forestry and fishing | 96.1 | 89.7 | 91.3 | 88.5 | 99.4 |
| B–E | Manufacturing, mining and quarrying and other industry | 106.7 | 102.8 | 103.6 | 102.9 | 102.0 |
| C | Of which: manufacturing | 107.9 | 103.9 | 104.8 | 103.6 | 102.5 |
| F | Construction | 126.9 | 130.6 | 130.2 | 135.5 | 122.5 |
| G–T | Services, total, of which: | 103.0 | 102.8 | 103.6 | 103.6 | 104.9 |
| G+I | Wholesale and retail trade and accommodation and food service activities | 105.1 | 105.9 | 106.9 | 106.6 | 108.2 |
| H | Transportation and storage | 101.9 | 102.8 | 105.7 | 106.8 | 105.2 |
| J | Information and communication | 102.4 | 106.8 | 107.7 | 107.1 | 111.7 |
| K | Financial and insurance activities | 100.5 | 101.4 | 100.6 | 100.2 | 100.6 |
| L | Real estate activities | 101.5 | 101.1 | 102.5 | 104.2 | 106.8 |
| M–N | Professional, scientific, technical and administrative activities | 106.7 | 106.8 | 108.1 | 107.1 | 106.8 |
| O–Q | Public administration, education and health and social work activities | 101.1 | 98.4 | 97.8 | 97.5 | 99.7 |
| R–T | Arts, entertainment and other services | 103.9 | 104.2 | 106.3 | 105.3 | 107.5 |
| GDP, total (at purchasers' prices) | 104.3 | 103.3 | 103.9 | 104.4 | 104.4 | |
The gross value added of services was up by 4.9% in total. The value added of information and communication rose by 12%, that of wholesale and retail trade as well as accommodation and food service activities by 8.2% and the value added of transportation and storage by 5.2%. The total value added of professional, scientific, technical and administrative activities grew by 6.8%, within which it was the increase of administrative and support service activities that was substantial. The performance of financial and insurance activities went up by 0.6%, which was due to the improving performance of insurance and activities auxiliary to financial services and insurance activities. The total value added of public administration, education and health decreased by 0.3%.
Services contributed by 2.6 percentage points, industry by 0.5 percentage point and construction by 0.5 percentage point to the 4.4% growth of gross domestic product in the 1st quarter of 2018. Within services the total contribution of wholesale and retail trade and accommodation and food service activities, of professional, scientific, technical and administrative activities and of information and communication (0.7 percentage point, 0.6 percentage point and 0.5 percentage point respectively) was the most significant. Public administration, education and health lowered the GDP growth rate by 0.1 percentage point.
Expenditure approach:
The actual final consumption of households was up by 5.1% 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 5.9%, 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, transport, communication as well as recreation and culture. The (domestic) consumption expenditure of households realised on the territory of Hungary increased by 6.0%.
The volume of social transfers in kind from the government was up by 0.7% and that of the actual final consumption of the government by 4.6%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) became 8.3% higher.
As a result of the above trends, actual final consumption rose by 5.0%.
Gross fixed capital formation went on increasing significantly, it was 17% higher in the 1st quarter than in the same period of the previous year. The volume of investments in construction and in machinery and equipment both went up substantially, the former to a higher extent. A growth was observed in the volume of investment in the majority of industries having relatively large weight, compared with a slight decrease in the case of manufacturing. The investments of budgetary units rose outstandingly, while the investment activities of enterprises lessened.
Gross capital formation increased by 4.5% compared to one year earlier.
Domestic use as a whole was up by 4.8% 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 | 2017 | 2018 | |||
|---|---|---|---|---|---|
| quarter | |||||
| I | II | III | IV | I | |
| Household final consumption expenditure | 103.4 | 104.8 | 104.7 | 105.6 | 105.9 |
| Social transfers in kind from government | 98.0 | 98.4 | 103.6 | 103.4 | 100.7 |
| Social transfers in kind from NPISHs | 104.7 | 101.5 | 114.9 | 106.7 | 108.3 |
| Actual final consumption of households | 102.5 | 103.6 | 104.8 | 105.2 | 105.1 |
| Actual final consumption of government | 90.4 | 97.2 | 101.8 | 108.8 | 104.6 |
| Actual final consumption, total | 100.8 | 102.7 | 104.4 | 105.7 | 105.0 |
| Gross fixed capital formation | 121.6 | 121.0 | 114.4 | 113.1 | 117.1 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 130.0 | 114.4 | 117.7 | 104.4 | 104.5 |
| Domestic use, total | 105.9 | 105.1 | 107.6 | 105.3 | 104.8 |
| Exports, of which: | 110.2 | 105.4 | 104.7 | 108.3 | 103.5 |
| Exports of goods | 110.2 | 106.0 | 104.0 | 107.1 | 103.1 |
| Exports of services | 110.5 | 103.0 | 107.2 | 112.5 | 105.4 |
| Imports, of which: | 112.7 | 107.6 | 109.1 | 109.7 | 103.8 |
| Imports of goods | 113.1 | 107.7 | 108.7 | 110.6 | 105.1 |
| Imports of services | 110.9 | 107.0 | 110.7 | 105.2 | 97.2 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 104.3 | 103.3 | 103.9 | 104.4 | 104.4 |
a) For these items the volume index is not applicable.
In the external trade of the national economy a surplus of 671 billion forints was generated at current prices. Exports were up by 3.5% and imports by 3.8%. In trade in goods, exports grew by 3.1% and imports by 5.1%. Within the external trade of the national economy, the exports of services (including tourism) increased by 5.4% and their imports went down by 2.8% compared to a year earlier.
Actual final consumption contributed by 3.6 percentage points and gross capital formation by 0.7 percentage point to the 4.4% growth of gross domestic product in the 1st quarter of 2018. The balance of external trade as a whole did not influence the GDP growth rate.
In the 1st quarter of 2018 compared to the previous quarter:
According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 1.2%. (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 2.2% in agriculture, by 1.5% in services, by 0.7% in construction and by 0.6% in industry.
From the expenditure approach, household final consumption expenditure rose by 1.3% out of the components of actual final consumption. The actual final consumption of the government became 0.9% and social transfers in kind from the government 0.5% lower. Gross fixed capital formation increased by 5.9%. In external trade, exports grew by 1.3% and imports by 2.7%.