Economic performance grows by 2.0% compared to previous quarter and decreases according to raw data by 2.1% compared to a year earlier
The volume of gross domestic product lessened by 2.1% in Hungary in the 1st quarter of 2021 compared to the corresponding period of the previous year. According to seasonally and calendar adjusted and reconciled data, the performance of the economy became 2.0% higher than in the previous quarter and 1.6% lower than in the corresponding quarter of the previous year.
In 1st quarter of 2021 compared to corresponding period of previous year:
The volume of GDP fell by 2.1%. The raw volume index in the second estimate indicates a 0.2 percentage point lower decrease compared with the 1st-quarter figure issued in the flash estimate1.
Production approach:
The performance of industry increased by 3.4%, within which that of manufacturing by 4.1% compared to the same period of the previous year. Among manufacturing branches, the largest contributor to the growth of industry was the increase in the manufacture of electrical equipment. The value added of construction lessened by 2.4% and that of agriculture grew by 2.5% compared to the corresponding period of the previous year.
Table 1: Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| NACE | Industries | 2020 | 2021 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| I | II | III | IV | I | ||
| A | Agriculture, forestry and fishing | 93.5 | 93.1 | 92.2 | 94.4 | 102.5 |
| B–E | Manufacturing, mining and quarrying and other industry | 101.6 | 79.8 | 97.6 | 102.2 | 103.4 |
| C | Of which: manufacturing | 101.2 | 78.3 | 98.1 | 102.3 | 104.1 |
| F | Construction | 101.5 | 87.1 | 82.1 | 96.1 | 97.6 |
| G–T | Services, total, of which: | 102.6 | 88.7 | 95.9 | 94.4 | 96.5 |
| G | Wholesale and retail trade | 109.3 | 95.4 | 102.1 | 99.9 | 99.7 |
| H | Transportation and storage | 100.2 | 76.0 | 80.8 | 80.5 | 88.9 |
| I | Accommodation and food service activities | 100.8 | 46.6 | 79.1 | 48.9 | 52.3 |
| J | Information and communication | 113.9 | 98.9 | 105.6 | 106.3 | 101.8 |
| K | Financial and insurance activities | 104.3 | 103.3 | 103.0 | 103.2 | 103.4 |
| L | Real estate activities | 98.2 | 93.0 | 96.0 | 92.2 | 97.1 |
| M–N | Professional, scientific, technical and administrative activities | 102.8 | 85.0 | 90.6 | 93.8 | 94.6 |
| O | Public administration and defence | 97.7 | 97.7 | 99.4 | 99.9 | 102.5 |
| P | Education | 101.2 | 94.3 | 97.4 | 102.2 | 96.2 |
| Q | Health and social work activities | 99.5 | 69.2 | 100.6 | 92.9 | 97.7 |
| R–T | Arts, entertainment and other services | 99.8 | 77.2 | 93.1 | 92.4 | 90.6 |
| GDP, total (at purchasers' prices) | 102.1 | 86.7 | 95.4 | 96.5 | 97.9 | |
The gross value added of services decreased by 3.5% in total. The highest falls were in accommodation and food service activities (–47.7%) as well as transportation and storage (–11.1%). The performance of wholesale and retail trade moderated by 0.3%. The value added of professional, scientific, technical and administrative activities went down by 5.4% and that of arts, entertainment and other services by 9.4%. The performance of financial and insurance activities increased by 3.4%. The value added of public administration became 2.5% higher and that of education and of health 3.8% and 2.3% lower, respectively.
Services contributed by 2.1 percentage points and construction by 0.1 percentage point to the 2.1% decrease of gross domestic product in the 1st quarter of 2021. Within services, GDP was lowered the most (by 0.8 percentage point) by wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as accommodation and food service activities. Industry improved the economic performance by 0.7 percentage point.
Expenditure approach:
The actual final consumption of households lessened by 3.7% 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, decreased by 4.8%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 6.5% lower than a year earlier, because the consumption expenditure of non-residents (e.g. tourists) declined significantly in the 1st quarter this year, too. Within this, the volume of domestic consumption expenditure went down in the majority of durability groups as well – semi-durable (–6.9%) and non-durable goods (–2.6%) and services (–11.1%), while that of durable goods slightly increased (1.7%).
The volume of social transfers in kind from the government became 1.3% and that of the actual final consumption of the government 10.4% higher. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) lessened by 0.5%.
As a result of the above trends, actual final consumption became 1.6% lower.
Gross fixed capital formation decreased by 0.1% in the 1st quarter compared to the corresponding period of the previous year. The volume of investments in construction slightly diminished, while that of investments in machinery and equipment went up. Out of the industries with the largest weight in total investments, the volume of investments rose in real estate activities and public administration and defence and significantly decreased in manufacturing as well as transportation and storage.
Gross capital formation fell by 12.4% compared to one year earlier.
As a result of the trends of consumption and capital formation, domestic use as a whole became 4.3% lower 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 | 2020 | 2021 | |||
|---|---|---|---|---|---|
| quarter | |||||
| I | II | III | IV | I | |
| Household final consumption expenditure | 104.7 | 92.3 | 97.3 | 96.3 | 95.2 |
| Social transfers in kind from government | 100.0 | 86.7 | 97.9 | 93.7 | 101.3 |
| Social transfers in kind from NPISHs | 102.7 | 101.0 | 99.9 | 99.5 | 99.5 |
| Actual final consumption of households | 103.9 | 91.7 | 97.5 | 96.0 | 96.3 |
| Actual final consumption of government | 101.2 | 107.0 | 100.4 | 102.4 | 110.4 |
| Actual final consumption, total | 103.5 | 94.0 | 97.9 | 97.1 | 98.4 |
| Gross fixed capital formation | 95.9 | 89.1 | 86.3 | 101.3 | 99.9 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 106.2 | 94.4 | 90.8 | 91.0 | 87.6 |
| Domestic use, total | 104.2 | 94.2 | 95.5 | 95.3 | 95.7 |
| Exports, of which: | 100.4 | 76.4 | 95.2 | 101.1 | 103.3 |
| Exports of goods | 101.0 | 80.0 | 102.5 | 109.7 | 110.0 |
| Exports of services | 98.1 | 63.7 | 72.9 | 72.0 | 76.0 |
| Imports, of which: | 102.7 | 84.8 | 95.3 | 99.6 | 101.1 |
| Imports of goods | 103.2 | 85.0 | 99.4 | 103.7 | 103.5 |
| Imports of services | 100.1 | 83.6 | 76.7 | 80.7 | 87.9 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 102.1 | 86.7 | 95.4 | 96.5 | 97.9 |
a) For these items the volume index is not applicable.
In the external trade of the economy a surplus was generated at current prices, its value was 669 billion forints. The volume of exports went up more considerably (3.3%) than that of imports (1.1%). In trade in goods, exports were 10.0% and imports 3.5% larger than a year earlier. Within the external trade of the economy, the exports of services (including tourism) dropped by 24.0% and their imports by 12.1%.
Actual final consumption contributed by 1.2 percentage points and gross capital formation by 2.8 percentage points to the 2.1% fall of gross domestic product in the 1st quarter of 2021. The balance of external trade as a whole increased the economic performance by 2.0 percentage points.
In 1st quarter of 2021 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy grew by 2.0%.
From the production approach, gross value added increased by 0.3% in agriculture, by 3.1% in industry, by 6.0% in construction and by 2.2% in services.
From the expenditure approach, household final consumption expenditure became 0.9%, the volume of social transfers in kind from the government 0.5% and the actual final consumption of the government 2.6% higher out of the components of actual final consumption. Gross fixed capital formation lessened by 0.6%. In external trade, exports were up by 1.6% and imports by 0.8%.