GDP rises by 4.8%
The volume of gross domestic product was 4.8% higher in Hungary in the 2nd quarter of 2018 than in the corresponding period of the previous year. The most industries contributed to the growth, market-based services to the greatest extent. According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 4.6% compared to the corresponding quarter of the previous year and by 1.0% compared to the previous quarter. In the 1st half of 2018, economic performance – based on unadjusted data – was 4.6% higher than a year earlier.
In the 2nd quarter of 2018 compared to the corresponding period of the previous year:
The volume of GDP was up by 4.8%. Compared with the 2nd-quarter figure issued in the flash estimate, the second estimate showed a 0.2 percentage point higher volume increase. The revision to the previously published volume index was mainly due to the more favourable performance of market-based services than expected.
Production approach:
The value added of agriculture was 3.2% higher than one year earlier. The performance of industry increased by 3.6%, within which that of manufacturing by 4.0% compared to the same period of the previous year. All of the manufacturing branches with relatively large weight were up with the exception of the manufacture of machinery and equipment n.e.c. The value added of construction rose by 24%, within which there was a significant growth in all of the branches.
Table 1: Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year=100.0%)
| NACE | Industries | 2017 | 2018 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| II | III | IV | I | II | ||
| A | Agriculture, forestry and fishing | 89.7 | 91.3 | 88.5 | 99.4 | 103.2 |
| B–E | Manufacturing, mining and quarrying and other industry | 102.8 | 103.6 | 102.9 | 102.0 | 103.6 |
| C | Of which: manufacturing | 103.9 | 104.8 | 103.6 | 102.5 | 104.0 |
| F | Construction | 130.6 | 130.2 | 135.5 | 122.5 | 123.7 |
| G–T | Services, total, of which: | 102.8 | 103.6 | 103.6 | 104.9 | 104.3 |
| G+I | Wholesale and retail trade and accommodation and food service activities | 105.9 | 106.9 | 106.6 | 108.2 | 107.7 |
| H | Transportation and storage | 102.8 | 105.7 | 106.8 | 105.2 | 103.8 |
| J | Information and communication | 106.8 | 107.7 | 107.1 | 111.7 | 105.2 |
| K | Financial and insurance activities | 101.4 | 100.6 | 100.2 | 100.6 | 102.8 |
| L | Real estate activities | 101.1 | 102.5 | 104.2 | 106.8 | 105.0 |
| M–N | Professional, scientific, technical and administrative activities | 106.8 | 108.1 | 107.1 | 106.8 | 106.7 |
| O–Q | Public administration, education and health and social work activities | 98.4 | 97.8 | 97.5 | 99.7 | 100.1 |
| R–T | Arts, entertainment and other services | 104.2 | 106.3 | 105.3 | 107.5 | 106.7 |
| GDP, total (at purchasers’ prices) | 103.3 | 103.9 | 104.4 | 104.4 | 104.8 | |
The gross value added of services went up by 4.3% in total. The most substantial increase (7.7%) was recorded for wholesale and retail trade as well as accommodation and food service activities. The total performance of professional, scientific, technical and administrative activities grew by 6.7%. The value added of information and communication rose by 5.2% and that of transportation and storage by 3.8%. The performance of financial and insurance activities was up by 2.8%, which was largely due to the improvement of financial intermediation services indirectly measured (FISIM), in addition, the loans and deposits of non-financial corporations and households both were up. The total value added of public administration, education and health stagnated (+0.1%).
Services contributed by 2.3 percentage points, industry by 0.8 percentage point and construction by 0.9 percentage point to the 4.8% increase of gross domestic product in the 2nd quarter of 2018. Within services the most significant contribution was observed for wholesale and retail trade and accommodation and food service activities, professional, scientific, technical and administrative activities and real estate activities (0.8 percentage point, 0.5 percentage point and 0.3 percentage point respectively).
Expenditure approach:
The actual final consumption of households increased by 4.3% 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 5.3%, within which volume increases were measured in most of 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, transport, communication, recreation and culture as well as other products and services. The (domestic) consumption expenditure of households realised on the territory of Hungary went up by 5.4%.
The volume of social transfers in kind from the government decreased by 1.2%, while that of the actual final consumption of the government grew by 1.9%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) became 8.9% higher.
As a result of the above trends, actual final consumption rose by 4.0%.
Gross fixed capital formation went on increasing substantially, it was 15% higher in the 2nd quarter than in the corresponding period of the previous year. The volume of investments in construction and in machinery and equipment both went up considerably, to nearly the same extent. A growth was observed in the volume of investment in the majority of industries. The investments of budgetary units continued to rise outstandingly.
Gross capital formation increased by 14% compared to a year earlier.
Domestic use as a whole was up by 6.0% 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 | 2017 | 2018 | |||
|---|---|---|---|---|---|
| quarter | |||||
| II | III | IV | I | II | |
| Household final consumption expenditure | 104.8 | 104.7 | 105.6 | 105.9 | 105.3 |
| Social transfers in kind from government | 98.4 | 103.6 | 103.4 | 100.7 | 98.8 |
| Social transfers in kind from NPISHs | 101.5 | 114.9 | 106.7 | 108.3 | 108.9 |
| Actual final consumption of households | 103.6 | 104.8 | 105.2 | 105.1 | 104.3 |
| Actual final consumption of government | 97.2 | 101.8 | 108.8 | 104.6 | 101.9 |
| Actual final consumption, total | 102.7 | 104.4 | 105.7 | 105.0 | 104.0 |
| Gross fixed capital formation | 121.0 | 114.4 | 113.1 | 117.1 | 115.0 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 114.4 | 117.7 | 104.4 | 104.5 | 113.5 |
| Domestic use, total | 105.1 | 107.6 | 105.3 | 104.8 | 106.0 |
| Exports, of which: | 105.4 | 104.7 | 108.3 | 103.5 | 106.2 |
| Exports of goods | 106.0 | 104.0 | 107.1 | 103.1 | 105.9 |
| Exports of services | 103.0 | 107.2 | 112.5 | 105.4 | 107.2 |
| Imports, of which: | 107.6 | 109.1 | 109.7 | 103.8 | 107.5 |
| Imports of goods | 107.7 | 108.7 | 110.6 | 105.1 | 108.4 |
| Imports of services | 107.0 | 110.7 | 105.2 | 97.2 | 103.0 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 103.3 | 103.9 | 104.4 | 104.4 | 104.8 |
a) For these items the volume index is not applicable.
In the external trade of the national economy a surplus of 827 billion forints was generated, lower at current prices than one year earlier. Exports rose by 6.2% and imports by 7.5%. In trade in goods, exports grew by 5.9% and imports by 8.4%. Within the external trade of the national economy, the exports of services (including tourism) increased by 7.2% and their imports by 3.0% compared to a year earlier.
Actual final consumption contributed by 2.8 percentage points and gross capital formation by 2.6 percentage points to the 4.8% growth of gross domestic product in the 2nd quarter of 2018. The balance of external trade as a whole slowed down the growth of economic performance by 0.5 percentage point.
In the 2nd 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 1.0%. (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 0.5% in services, by 6.7% in construction and by 0.9% in industry.
From the expenditure approach, household final consumption expenditure rose by 1.1% out of the components of actual final consumption. The volume of social transfers in kind from the government lessened by 0.6% and that of the actual final consumption of the government by 0.1%. Gross fixed capital formation increased by 3.0%. In external trade, exports and imports both went up by 2.4%.