GDP rises by 5.3%
The volume of gross domestic product was 5.3% higher in Hungary in the 1st quarter of 2019 than in the corresponding period of the previous year. Most industries contributed to the growth, market-based services, industry and construction to the greatest extent. According to seasonally and calendar adjusted and reconciled data the performance of the economy was up by 5.2% compared to the corresponding quarter of the previous year and by 1.5% compared to the previous quarter.
In the 1st quarter of 2019 compared to the corresponding period of the previous year:
The volume of GDP was up by 5.3%. Compared with the 1st-quarter figure issued in the flash estimate, the second estimate was unchanged.
Production approach:
The performance of industry increased by 5.9%, within which that of manufacturing by 5.8% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the growth of industry were the manufacture of motor vehicles, trailers and semi-trailers and the manufacture of electrical equipment. The value added of construction rose by 47%, within which there was a marked increase in all the branches. The value added of agriculture diminished by 2.7% compared to the same period of the previous year.
Table 1: Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| NACE | Industry | 2018 | 2019 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| I | II | III | IV | I | ||
| A | Agriculture, forestry and fishing | 105.3 | 105.6 | 103.2 | 108.3 | 97.3 |
| B–E | Manufacturing, mining and quarrying and other industry | 102.4 | 103.8 | 102.5 | 104.1 | 105.9 |
| C | Of which: manufacturing | 102.9 | 104.2 | 102.3 | 104.3 | 105.8 |
| F | Construction | 119.4 | 122.5 | 127.9 | 120.4 | 146.7 |
| G–T | Services, total, of which: | 105.2 | 104.5 | 104.2 | 103.9 | 103.8 |
| G+I | Wholesale and retail trade and accommodation and food service activities | 108.7 | 107.8 | 107.4 | 107.9 | 106.5 |
| H | Transportation and storage | 106.6 | 104.1 | 104.4 | 103.7 | 102.9 |
| J | Information and communication | 110.9 | 105.8 | 105.6 | 107.3 | 106.5 |
| K | Financial and insurance activities | 102.5 | 102.7 | 102.6 | 102.0 | 103.0 |
| L | Real estate activities | 103.5 | 104.8 | 104.2 | 104.8 | 104.4 |
| M–N | Professional, scientific, technical and administrative activities | 107.6 | 106.8 | 106.6 | 105.3 | 106.7 |
| O–Q | Public administration, education and health and social work activities | 100.3 | 100.3 | 100.4 | 99.7 | 99.8 |
| R–T | Arts, entertainment and other services | 108.9 | 106.7 | 105.1 | 102.5 | 104.0 |
| GDP, total (at purchasers’ prices) | 104.6 | 104.9 | 105.1 | 105.1 | 105.3 | |
The gross value added of services went up by 3.8% in total, the highest growth (6.7%) was reached by professional, scientific, technical and administrative activities. The value added of wholesale and retail trade and accommodation and food service activities as well as information and communication rose by 6.5% each. The performance of financial and insurance activities was up by 3.0%. The total value added of public administration, education and health decreased by 0.2%.
Services contributed by 2.1 percentage points, industry by 1.3 percentage points and construction by 1.2 percentage points to the 5.3% increase of gross domestic product in the 1st quarter of 2019. Within services the most significant contribution (0.6 percentage point each) was observed for professional, scientific, technical and administrative activities as well as wholesale and retail trade and accommodation and food service activities.
Expenditure approach:
The actual final consumption of households increased by 4.8% 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, went up by 5.2%. The (domestic) consumption expenditure of households realised on the territory of Hungary was 5.1% higher than a year earlier. Within this, a higher-than-average growth was recorded in the volume of consumption expenditure on durable goods (e.g. passenger cars, furniture, large electric household appliances; 16%) and semi-durable goods (e.g. clothing, small household appliances, parts for vehicles; 8.6%) as well as services (5.5%), compared with a lower-than-average rise for non-durable goods (e.g. food, alcoholic beverages, tobacco, public utilities, medicine; 2.5%).
The volume of social transfers in kind from the government became 2.2% and that of the actual final consumption of the government 2.1% higher. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) grew by 9.6%.
As a result of the above trends, actual final consumption rose by 4.4%.
Gross fixed capital formation went on increasing substantially, it was 23% higher in the 1st quarter than in the corresponding period of the previous year. The volume of investments in construction and in machinery and equipment both went up, the former at a higher rate. In the industries with the largest weight (manufacturing, transportation and storage and real estate activities) the volume of investments rose.
Gross capital formation increased by 5.7% compared to one year earlier.
Domestic use as a whole became 4.3% higher 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 | 2018 | 2019 | |||
|---|---|---|---|---|---|
| quarter | |||||
| I | II | III | IV | I | |
| Household final consumption expenditure | 105.6 | 105.4 | 105.4 | 105.0 | 105.2 |
| Social transfers in kind from government | 102.4 | 100.2 | 100.2 | 101.0 | 102.2 |
| Social transfers in kind from NPISHs | 109.0 | 109.5 | 103.0 | 104.3 | 109.6 |
| Actual final consumption of households | 105.2 | 104.6 | 104.4 | 104.3 | 104.8 |
| Actual final consumption of government | 100.8 | 99.3 | 99.6 | 93.0 | 102.1 |
| Actual final consumption, total | 104.6 | 103.8 | 103.7 | 102.6 | 104.4 |
| Gross fixed capital formation | 110.5 | 115.6 | 120.0 | 117.2 | 123.4 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 111.0 | 113.4 | 120.8 | 120.7 | 105.7 |
| Domestic use, total | 105.9 | 106.0 | 108.6 | 107.2 | 104.3 |
| Exports, of which: | 104.0 | 107.1 | 102.3 | 105.6 | 107.7 |
| Exports of goods | 103.8 | 106.0 | 100.7 | 106.6 | 107.9 |
| Exports of services | 104.5 | 111.0 | 107.5 | 102.0 | 106.7 |
| Imports, of which: | 105.3 | 108.5 | 106.2 | 108.2 | 106.7 |
| Imports of goods | 105.8 | 108.8 | 105.8 | 108.8 | 107.5 |
| Imports of services | 102.5 | 107.0 | 108.3 | 105.4 | 102.3 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 104.6 | 104.9 | 105.1 | 105.1 | 105.3 |
a) For these items the volume index is not applicable.
In the external trade of the national economy a surplus of 600 billion forints was generated at current prices. The volume of exports grew by 7.7% and that of imports by 6.7%. In trade in goods, exports were up by 7.9% and imports by 7.5%. Within the external trade of the national economy, the exports of services (including tourism) rose by 6.7% and their imports by 2.3% compared to a year earlier.
Actual final consumption contributed by 3.2 percentage points and gross capital formation by 0.8 percentage point to the 5.3% growth of gross domestic product in the 1st quarter of 2019. The balance of external trade as a whole helped the growth of economic performance by 1.3 percentage points.
In the 1st quarter of 2019 compared to the previous quarter, based on seasonally and calendar adjusted and reconciled data:
The performance of the economy went up by 1.5%.
From the production approach, gross value added grew by 17% in construction, by 2.8% in industry and by 1.0% in services.
From the expenditure approach, household final consumption expenditure increased by 1.3%, the volume of social transfers in kind from the government by 0.2% and that of the actual final consumption of the government by 0.9% out of the components of actual final consumption. Gross fixed capital formation was up by 6.2%. In external trade, exports rose by 3.1% and imports by 2.4%.