Published on: 30 May 2017

Investments increase by 34% in 1st quarter 2017

The volume of investments in the national economy was 34% higher in the 1st quarter of 2017 than the low base in the same period of the previous year. The marked increase affected almost the whole of the national economy. The growth of investments was influenced by a recovery in the capacity-increasing investments of enterprises and a higher impetus in the actual realisation of started projects in the 2014–2020 EU budget cycle.

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

The seasonally adjusted volume of investments rose by 7.4%.

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

The volume of investment activities was up by 34%, within which that of investments in machinery and equipment by 25% and the volume of construction investments by 49%.

Investment performance grew by 40% in the case of enterprises employing at least 50 persons and realising six tenths of investments and by 31% in the public sector.

Investment activity rose in most of the areas of the national economy. Out of the areas with a relatively large weight the highest increase (56%) was recorded in the investment performance of real estate activities, where dwelling constructions and commercial real estate developments both went up.

The volume of investments of transportation and storage – primarily due to the resumption of road construction and rehabilitation projects, financed from EU funds – was 48% higher than a year earlier.

The developments of manufacturing, representing more than one-third of investments in the national economy, – continuing the expansion lasting since the 2nd quarter of 2016 – grew by 32%. Investments rose in 10 of the 13 sub-sections, to the highest extent in the manufacture of computer, electronic and optical products. The volume grew outstandingly in the manufacture of basic pharmaceutical products and pharmaceutical preparations, food products, beverages and tobacco products as well as rubber and plastic products and non-metallic mineral products. The investments of the manufacture of transport equipment, having a significant role in industrial production, grew markedly as well.

The investment performance of wholesale and retail trade, and repair of motor vehicles and motorcycles – after a growth of three quarters – increased again (by 32%), first of all as a result of retail unit upgrades, reconstructions and renovations.

The investments of agriculture, forestry and fishing – mostly due to the acquisitions of agricultural machinery (tractors, combine-harvesters and sprayers) – grew by 46%.

Out of the areas with relatively small weight in the national economy, investments rose outstandingly – primarily due to expenditures on exploratory drilling in connection with oil research activities in the current year – in mining and quarrying (more than four times higher), and – mainly due to surging motor vehicle purchases by leasing companies – in administrative and support service activities (by 67%).

Out of the mostly publicly financed areas, investments increased – principally due to the resumption of EU-financed developments – in public administration and defence and compulsory social security (by 17%) and education (by 53%), while they were lowered by 7.8% in human health and social work activities.

In accommodation and food service activities hotel constructions and renovations and in arts, entertainment and recreation large-scale investments related to high-performance sports helped the volume of investments rise (by 38% and 31% respectively).

The developments of construction – partly as an effect of the growth of production – were up by 16%. The investment performance of information and communication expanded by 14%, which was influenced by acquisitions of telecommunications equipment and extensions of cable networks, too.

Investment outlay of national economy

Section Quarter 1 of 2017 Quarters 1–4 of 2016
at current prices,million forints volume index, corresponding period of previous year=100.0% at current prices,million forints volume index, corresponding period of previous year=100.0%
Total1 032 690 134.14 830 06080.0
Of which:
agriculture, forestry and fishing64 540146.3265 75192.5
manufacturing 366 582132.11 576 117107.0
wholesale and retail trade, repair of motor vehicles and motorcycles73 273132.1323 998110.0
transportation and storage104 835148.1621 17757.9
real estate activities143 221156.4657 20695.1
public administration and defence; compulsory social security43 103117.4221 02556.1