Economic performance grows by 17.9% according to raw data compared to a year earlier and by 2.7% compared to previous quarter
The volume of gross domestic product increased by 17.9% in Hungary in the 2nd 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 rose by 2.7% compared to the previous quarter and by 17.7% compared to the corresponding period of the previous year. In the first half of 2021, the economic performance was 7.6% higher (7.2% higher according to seasonally and calendar adjusted and reconciled data) than in the same period of the previous year.
In 2nd quarter 2021:
The volume of GDP grew by 17.9% compared to the corresponding period of the previous year. Compared with the 2nd-quarter figure issued in the flash estimate, the raw volume index in the second estimate was unchanged.1
GDP was 2.2% larger according to raw data than in the 2nd quarter of 2019.
Production approach:
The performance of industry increased by 36.9%, within which that of manufacturing by 39.9% 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 motor vehicles, trailers and semi-trailers. The value added of construction grew by 18.4% and that of agriculture by 1.1% 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 | ||||||
| II | III | IV | I | II | ||
| A | Agriculture, forestry and fishing | 93.1 | 92.2 | 94.4 | 102.5 | 101.1 |
| B–E | Manufacturing, mining and quarrying and other industry | 79.8 | 97.6 | 102.2 | 103.4 | 136.9 |
| C | Of which: manufacturing | 78.3 | 98.1 | 102.3 | 104.1 | 139.9 |
| F | Construction | 87.1 | 82.1 | 96.1 | 97.6 | 118.4 |
| G–T | Services, total, of which: | 88.7 | 95.9 | 94.4 | 96.5 | 112.4 |
| G | Wholesale and retail trade | 95.4 | 102.1 | 99.9 | 99.7 | 116.9 |
| H | Transportation and storage | 76.0 | 80.8 | 80.5 | 88.9 | 115.1 |
| I | Accommodation and food service activities | 46.6 | 79.1 | 48.9 | 52.3 | 171.5 |
| J | Information and communication | 98.9 | 105.6 | 106.3 | 101.8 | 116.7 |
| K | Financial and insurance activities | 103.3 | 103.0 | 103.2 | 103.4 | 103.7 |
| L | Real estate activities | 93.0 | 96.0 | 92.2 | 97.1 | 104.7 |
| M–N | Professional, scientific, technical and administrative activities | 85.0 | 90.6 | 93.8 | 94.6 | 116.4 |
| O | Public administration and defence | 97.7 | 99.4 | 99.9 | 102.5 | 101.9 |
| P | Education | 94.3 | 97.4 | 102.2 | 96.2 | 108.8 |
| Q | Health and social work activities | 69.2 | 100.6 | 92.9 | 97.7 | 123.2 |
| R–T | Arts, entertainment and other services | 77.2 | 93.1 | 92.4 | 90.6 | 117.1 |
| GDP, total (at purchasers’ prices) | 86.7 | 95.4 | 96.5 | 97.9 | 117.9 | |
The gross value added of services became 12.4% higher in total. The most marked increases occurred in accommodation and food service activities (71.5%) as well as health and social work activities (23.2%). The performance of arts, entertainment and other services was up by 17.1%, that of wholesale and retail trade by 16.9% and the performance of information and communication by 16.7%. The value added of professional, scientific, technical and administrative activities increased by 16.4%. The performance of financial and insurance activities grew by 3.7%. The value added of public administration rose by 1.9% and that of education by 8.8%.
Industry contributed by 7.3 percentage points, services by 7.0 percentage points and construction by 0.9 percentage point to the 17.9% growth of gross domestic product in the 2nd quarter of 2021. Within services, GDP was increased the most (by 2.2 percentage points) by wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as accommodation and food service activities.
Expenditure approach:
The actual final consumption of households was up by 9.9% 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, increased by 10.6%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 12.2% higher than a year earlier. The volume of domestic consumption expenditure rose in every durability group, that of services by 19.9%, the volume of durable goods by 19.4%, that of semi-durable goods by 13.2% and the volume of non-durable goods by 4.3%.
The volume of social transfers in kind from the government became 7.5% higher and that of the actual final consumption of the government lessened by 0.5%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) was up by 6.1%.
As a result of the above trends, actual final consumption became 8.1% higher.
Gross fixed capital formation increased by 8.3% in the 2nd quarter compared to the corresponding period of the previous year. The volume of investments in construction went up slightly and that of investments in machinery and equipment to a high extent. Within investments, the largest growths were observed in construction and in service activities, and there were significant increases in wholesale and retail trade, administrative and support service activities as well as arts, entertainment and other services.
Gross capital formation grew by 19.7% compared to one year earlier.
As a result of the trends of consumption and capital formation, domestic use as a whole became 11.3% higher 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 | 2020 | 2021 | |||
|---|---|---|---|---|---|
| quarter | |||||
| II | III | IV | I | II | |
| Household final consumption expenditure | 92.3 | 97.3 | 96.3 | 95.2 | 110.6 |
| Social transfers in kind from government | 86.7 | 97.9 | 93.7 | 101.3 | 107.5 |
| Social transfers in kind from NPISHs | 101.0 | 99.9 | 99.5 | 99.5 | 106.1 |
| Actual final consumption of households | 91.7 | 97.5 | 96.0 | 96.3 | 109.9 |
| Actual final consumption of government | 107.0 | 100.4 | 102.4 | 110.4 | 99.5 |
| Actual final consumption, total | 94.0 | 97.9 | 97.1 | 98.4 | 108.1 |
| Gross fixed capital formation | 89.1 | 86.3 | 101.3 | 99.9 | 108.3 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 94.4 | 90.8 | 91.0 | 87.6 | 119.7 |
| Domestic use, total | 94.2 | 95.5 | 95.3 | 95.7 | 111.3 |
| Exports, of which: | 76.4 | 95.2 | 101.1 | 103.3 | 133.0 |
| Exports of goods | 80.0 | 102.5 | 109.7 | 110.0 | 135.9 |
| Exports of services | 63.7 | 72.9 | 72.0 | 76.0 | 120.3 |
| Imports, of which: | 84.8 | 95.3 | 99.6 | 101.1 | 123.4 |
| Imports of goods | 85.0 | 99.4 | 103.7 | 103.5 | 128.6 |
| Imports of services | 83.6 | 76.7 | 80.7 | 87.9 | 96.6 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 86.7 | 95.4 | 96.5 | 97.9 | 117.9 |
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 298 billion forints. The volume of exports went up more markedly (33.0%) than that of imports (23.4%). In trade in goods, exports became 35.9% and imports 28.6% larger than a year earlier. Within the external trade of the economy, the exports of services (including tourism) went up by 20.3% and their imports decreased by 3.4%.
Actual final consumption contributed by 6.0 percentage points and gross capital formation by 5.4 percentage points to the 17.9% increase of gross domestic product in the 2nd quarter of 2021. The balance of external trade as a whole increased the economic performance by 6.5 percentage points.
In 2nd quarter 2021 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy grew by 2.7%.
From the production approach, gross value added increased by 2.8% in industry, by 3.6% in construction and by 1.8% in services and diminished by 1.2% in agriculture.
From the expenditure approach, household final consumption expenditure rose by 1.7%, while the volume of social transfers in kind from the government decreased by 1.1% and that of the actual final consumption of the government by 2.3% out of the components of actual final consumption. Gross fixed capital formation grew by 3.2%. In external trade, the volume of exports became 0.8% smaller and that of imports 1.1% larger.