Economic performance increases by 7.1% in both 4th quarter and 2021 as a whole
The volume of gross domestic product increased by 7.1% in Hungary in the 4th 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 2.0% compared to the previous quarter and by 7.0% compared to the corresponding period of the previous year. In 2021, the volume of GDP grew by 7.1% compared to the previous year and by 2.1% compared to 2019 according to raw data.
In 4th quarter 2021:
The volume of GDP rose by 7.1% compared to the corresponding period of the previous year. Compared with the 4th-quarter figure issued in the flash estimate, the raw volume index in the second estimate indicates a 0.1 percentage point lower growth.1
GDP was 3.9% larger according to raw data than in the 4th quarter of 2019, preceding the pandemic.
Production approach:
Industry increased its performance by 2.1%, within which manufacturing by 1.8% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the growth of industry were increases in the manufacture of fabricated metal products and in food industry. The value added of construction went up by 21.4% and that of agriculture decreased by 6.1% 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 code | Industries | 2020 | 2021 | |||||
|---|---|---|---|---|---|---|---|---|
| quarter(s) | ||||||||
| IV | I–IV | I | II | III | IV | I–IV | ||
| A | Agriculture, forestry and fishing | 93.0 | 91.3 | 102.7 | 101.4 | 96.1 | 93.9 | 97.8 |
| B–E | Manufacturing, mining and quarrying and other industry | 100.4 | 93.0 | 103.7 | 135.2 | 102.6 | 102.1 | 109.8 |
| C | Of which: manufacturing | 100.5 | 92.4 | 104.4 | 138.3 | 102.7 | 101.8 | 110.6 |
| F | Construction | 95.5 | 89.1 | 93.8 | 118.5 | 120.3 | 121.4 | 115.8 |
| G–T | Services, total, of which: | 95.9 | 96.5 | 97.1 | 113.0 | 107.0 | 108.1 | 106.2 |
| G | Wholesale and retail trade | 100.2 | 100.9 | 101.0 | 116.8 | 105.7 | 104.3 | 106.8 |
| H | Transportation and storage | 87.3 | 89.5 | 89.2 | 114.7 | 112.7 | 120.5 | 109.5 |
| I | Accommodation and food service activities | 39.0 | 57.5 | 52.6 | 171.2 | 122.7 | 168.8 | 114.1 |
| J | Information and communication | 106.6 | 105.0 | 107.6 | 117.1 | 116.7 | 114.1 | 113.9 |
| K | Financial and insurance activities | 104.0 | 104.1 | 103.4 | 103.6 | 106.3 | 106.6 | 104.9 |
| L | Real estate activities | 97.4 | 100.9 | 94.7 | 106.0 | 105.0 | 105.3 | 102.6 |
| M–N | Professional, scientific, technical and administrative activities | 96.3 | 94.6 | 92.7 | 117.2 | 110.0 | 109.4 | 107.2 |
| O | Public administration and defence | 102.8 | 101.6 | 102.3 | 101.7 | 100.2 | 100.3 | 101.1 |
| P | Education | 104.8 | 101.1 | 97.4 | 109.2 | 98.5 | 100.3 | 101.3 |
| Q | Health and social work activities | 87.8 | 84.5 | 103.6 | 137.9 | 103.2 | 107.8 | 111.1 |
| R–T | Arts, entertainment and other services | 86.4 | 85.9 | 87.9 | 113.8 | 109.4 | 113.7 | 106.3 |
| GDP, total (at purchasers’ prices) | 97.0 | 95.3 | 98.1 | 117.8 | 106.2 | 107.1 | 107.1 | |
The gross value added of services became 8.1% higher in total. The most marked increases occurred in the industries of accommodation and food service activities (68.8%), transportation and storage (20.5%) as well as information and communication (14.1%). The value added of professional, scientific, technical and administrative activities increased by 9.4%. The performance of arts, entertainment and other services was up by 13.7% and that of wholesale and retail trade by 4.3%. The performance of financial and insurance activities grew by 6.6%. The value added of public administration went up by 0.3% and that of human health and social work activities by 7.8%. The performance of education rose by 0.3%.
Services contributed by 4.6 percentage points, construction by 1.2 percentage points and industry by 0.4 percentage point to the 7.1% growth of gross domestic product in the 4th quarter of 2021. Within services, GDP was increased the most (by 1.0 percentage point and 0.9 percentage point) by transportation and storage and wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as accommodation and food service activities, respectively.
Expenditure approach:
The actual final consumption of households rose by 7.1% 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 7.7%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 8.5% higher than a year earlier. The volume of domestic consumption expenditure grew in every durability group, that of services by 13.6%, the volume of semi-durable goods by 11.0%, that of durable ones by 8.4% and the volume of non-durable ones by 3.1%.
The volume of social transfers in kind from the government became 5.7% and that of the actual final consumption of the government 5.8% higher. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) rose by 0.7%.
As a result of the above trends, actual final consumption increased by 6.8%.
Gross fixed capital formation grew by 3.3% in the 4th quarter compared to the corresponding period of the previous year. The volume of investments in construction went up and that of investments in machinery and equipment decreased. Out of the industries with the highest share of investments, the volume of developments significantly rose in manufacturing as well as transportation and storage and considerably fell in real estate activities.
Gross capital formation was up by 5.4% compared to one year earlier.
As a result of the trends of consumption and capital formation, domestic use as a whole grew by 6.4% in the 4th 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(s) | |||||||
| IV | I–IV | I | II | III | IV | I–IV | |
| Household final consumption expenditure | 97.1 | 98.4 | 94.1 | 109.4 | 106.1 | 107.7 | 104.3 |
| Social transfers in kind from government | 93.4 | 94.7 | 102.6 | 108.2 | 102.0 | 105.7 | 104.5 |
| Social transfers in kind from NPISHs | 103.4 | 103.4 | 101.8 | 103.8 | 103.5 | 100.7 | 102.4 |
| Actual final consumption of households | 96.7 | 98.0 | 95.9 | 109.0 | 105.4 | 107.1 | 104.3 |
| Actual final consumption of government | 101.3 | 105.2 | 107.5 | 100.7 | 105.5 | 105.8 | 104.8 |
| Actual final consumption, total | 97.5 | 99.1 | 97.6 | 107.6 | 105.4 | 106.8 | 104.4 |
| Gross fixed capital formation | 101.7 | 93.1 | 97.0 | 109.4 | 111.6 | 103.3 | 106.0 |
| Changes in inventoriesa) | x | x | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x | x | x |
| Gross capital formation, total | 95.3 | 93.0 | 87.8 | 119.9 | 118.0 | 105.4 | 108.7 |
| Domestic use, total | 96.8 | 97.3 | 95.3 | 110.9 | 109.3 | 106.4 | 105.6 |
| Exports, of which: | 102.5 | 94.1 | 104.6 | 136.1 | 102.7 | 103.2 | 110.1 |
| Exports of goods | 111.5 | 99.4 | 110.7 | 136.4 | 99.3 | 98.5 | 109.6 |
| Exports of services | 72.1 | 75.7 | 79.7 | 134.5 | 117.8 | 128.3 | 112.6 |
| Imports, of which: | 102.3 | 96.5 | 101.6 | 125.8 | 106.4 | 102.3 | 108.2 |
| Imports of goods | 106.9 | 99.0 | 103.4 | 129.1 | 104.5 | 99.6 | 108.1 |
| Imports of services | 81.4 | 84.4 | 92.1 | 108.0 | 118.3 | 119.1 | 109.2 |
| External balance of goods and servicesa) | x | x | x | x | x | x | x |
| Gross domestic product (GDP), total | 97.0 | 95.3 | 98.1 | 117.8 | 106.2 | 107.1 | 107.1 |
a) For these items the volume index is not applicable.
In the external trade of the economy a deficit of 328 billion forints was generated at current prices. The volume of exports went up at a higher rate (3.2%) than that of imports (2.3%). In trade in goods, exports became 1.5% and imports 0.4% lower than a year earlier. Within the external trade of the economy, the exports of services (including tourism) increased by 28.3% and their imports by 19.1% compared to the same period of the previous year.
Actual final consumption contributed by 4.8 percentage points and gross capital formation by 1.6 percentage points to the 7.1% increase of gross domestic product in the 4th quarter of 2021. The balance of external trade as a whole increased the economic performance by 0.8 percentage point.
In 4th quarter 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, value added was up by 9.0% in construction and by 1.9% in services and decreased by 0.1% in agriculture and by 0.3% in industry.
From the expenditure approach, the volume of household final consumption expenditure rose by 1.7%, that of social transfers in kind from the government by 0.9% and the volume of the actual final consumption of the government by 1.3% out of the components of actual final consumption. Gross fixed capital formation decreased by 0.3%. In external trade, the volume of exports grew by 2.7% and that of imports by 0.4%.
In 2021 compared to previous year:
According to the first estimate the value of GDP was 55,046 billion forints at current prices, its volume increased by 7.1% (according to both raw and calendar adjusted data).
From the production approach, value added became 9.8% higher in industry, 15.8% larger in construction and 6.2% higher in services and 2.2% smaller in agriculture.
Services contributed by 3.6 percentage points, industry by 1.9 percentage points and construction by 0.7 percentage point to the increase of GDP. Agriculture lowered GDP growth by 0.1 percentage point.
From the expenditure approach, the actual final consumption of households rose by 4.3% and the actual final consumption of the government by 4.8%, as a total result of which the volume of actual final consumption became 4.4% larger. Gross capital formation grew by 8.7%, within which gross fixed capital formation by 6.0%. The volume of exports increased by 10.1% and that of imports by 8.2%.
From the expenditure approach, actual final consumption contributed by 3.1 percentage points, gross capital formation by 2.4 percentage points and the balance of external trade as a whole by 1.7 percentage points to the growth of the economy.