Economic performance increases by 6.5% in 2nd quarter
The volume of gross domestic product increased by 6.5% in Hungary in the 2nd quarter of 2022 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 1.0% compared to the previous quarter and by 6.5% compared to the corresponding period of the previous year. The performance of the economy was 7.3% higher in the first half of 2022 than in the same period of the previous year.
In 2nd quarter 2022:
The volume of GDP rose by 6.5% compared to the corresponding period of the previous year. The raw volume index in the second estimate was unchanged compared with the 2nd-quarter figure issued in the flash estimate.
Production approach:
Industry increased its performance by 3.9%, within which manufacturing by 4.5% 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 electrical equipment and in food industry. The value added of construction went up by 0.4%, while that of agriculture – owing to the severe drought – decreased by 35.5% compared to the corresponding period of the previous year.
Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| NACE | Industries | 2021 | 2022 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| II | III | IV | I | II | ||
| A | Agriculture, forestry and fishing | 100.4 | 96.1 | 92.7 | 96.1 | 64.5 |
| B–E | Manufacturing, mining and quarrying and other industry | 135.3 | 102.6 | 102.1 | 104.9 | 103.9 |
| C | Of which: manufacturing | 138.4 | 102.7 | 101.9 | 104.6 | 104.5 |
| F | Construction | 118.4 | 120.1 | 121.3 | 118.3 | 100.4 |
| G–T | Services, total, of which: | 112.9 | 106.9 | 108.2 | 109.9 | 110.5 |
| G | Wholesale and retail trade | 116.8 | 105.7 | 104.3 | 109.4 | 109.1 |
| H | Transportation and storage | 114.7 | 112.5 | 120.3 | 120.4 | 120.9 |
| I | Accommodation and food service activities | 170.9 | 122.7 | 168.7 | 180.8 | 146.2 |
| J | Information and communication | 117.1 | 116.7 | 114.1 | 111.6 | 113.4 |
| K | Financial and insurance activities | 103.6 | 106.4 | 106.9 | 106.3 | 106.4 |
| L | Real estate activities | 106.2 | 104.9 | 104.5 | 105.4 | 106.4 |
| M–N | Professional, scientific, technical and administrative activities | 117.3 | 108.5 | 109.4 | 113.8 | 113.4 |
| O | Public administration and defence | 101.6 | 100.1 | 100.2 | 100.9 | 100.5 |
| P | Education | 109.1 | 99.4 | 102.2 | 102.9 | 105.4 |
| Q | Health and social work activities | 137.1 | 104.3 | 107.5 | 108.9 | 113.6 |
| R–T | Arts, entertainment and other services | 114.1 | 109.2 | 113.7 | 114.8 | 120.8 |
| GDP, total (at purchasers’ prices) | 117.8 | 106.2 | 107.1 | 108.2 | 106.5 | |
The gross value added of services became 10.5% higher in total. The most marked increases occurred in the industries of accommodation and food service activities (46.2%), transportation and storage (20.9%) as well as arts, entertainment, recreation and other services (20.8%). The value added of professional, scientific, technical and administrative activities, as well as of information and communication increased by 13.4%. The value added of wholesale and retail trade rose by 9.1%. The performance of financial and insurance activities grew by 6.4%. The value added of public administration went up by 0.5% and that of human health and social work activities by 13.6%. The performance of education rose by 5.4%.
Services contributed by 5.7 percentage points and industry by 0.9 percentage point to the 6.5% growth of gross domestic product in the 2nd quarter of 2022. Within services, GDP was increased the most (by 1.3 percentage points) by wholesale and retail trade, and repair of motor vehicles and motorcycles, as well as accommodation and food service activities. The decrease in the performance of agriculture slowed the growth by 1.1 percentage points, while construction had no serious impact on GDP volume change this time.
Expenditure approach:
The actual final consumption of households rose by 9.4% 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 10.1%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 11.4% higher than a year earlier. The volume of domestic consumption expenditure grew in every durability group, that of services by 15.6%, the volume of semi-durable goods by 13.7%, that of durable ones by 11.6% and the volume of non-durable ones by 6.7%.
The volume of social transfers in kind from the government became 6.2% and that of the actual final consumption of the government 0.3% higher. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) rose by 6.1%.
As a result of the above trends, actual final consumption increased by 7.9%.
Gross fixed capital formation grew by 6.1% in the 2nd quarter compared to the corresponding period of the previous year. The volume of investments in machinery and equipment went up to a higher extent than that of investments in construction. Out of the industries with the highest share of investments, the volume of developments significantly rose in manufacturing as well as in real estate activities and fell in the area of transportation and storage.
Gross capital formation became 2.4% larger than one year earlier.
As a result of the trends of consumption and capital formation, domestic use as a whole grew by 6.2% in the 2nd quarter.
Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| Items of use | 2021 | 2022 | |||
|---|---|---|---|---|---|
| quarter | |||||
| II | III | IV | I | II | |
| Household final consumption expenditure | 109.8 | 106.7 | 108.2 | 114.1 | 110.1 |
| Social transfers in kind from government | 107.6 | 101.0 | 102.7 | 101.9 | 106.2 |
| Social transfers in kind from NPISHs | 103.3 | 101.3 | 103.7 | 101.5 | 106.1 |
| Actual final consumption of households | 109.1 | 105.6 | 107.1 | 111.5 | 109.4 |
| Actual final consumption of government | 99.9 | 105.5 | 100.4 | 106.4 | 100.3 |
| Actual final consumption, total | 107.6 | 105.6 | 105.9 | 110.6 | 107.9 |
| Gross fixed capital formation | 109.3 | 111.5 | 103.2 | 113.2 | 106.1 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 121.9 | 118.7 | 108.8 | 117.6 | 102.4 |
| Domestic use, total | 111.4 | 109.6 | 106.8 | 111.5 | 106.2 |
| Exports, of which: | 136.1 | 102.8 | 102.6 | 105.2 | 107.6 |
| Exports of goods | 137.4 | 99.8 | 99.3 | 102.0 | 104.4 |
| Exports of services | 130.5 | 115.7 | 118.6 | 123.1 | 123.4 |
| Imports, of which: | 126.7 | 107.0 | 102.0 | 108.3 | 107.3 |
| Imports of goods | 130.0 | 105.3 | 99.8 | 107.1 | 104.4 |
| Imports of services | 108.6 | 117.1 | 115.2 | 115.5 | 126.9 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 117.8 | 106.2 | 107.1 | 108.2 | 106.5 |
a) For these items the volume index is not applicable.
In the external trade of the economy a deficit of 333 billion forints was generated at current prices. The volume of exports went up at a higher rate (7.6%) than that of imports (7.3%). In trade in goods, accounting for some 85% of external trade, both exports and imports became 4.4% higher than a year earlier. Within the external trade of the economy, the exports of services (including tourism) increased by 23.4% and their imports by 26.9% compared to the same period of the previous year.
Actual final consumption contributed by 5.4 percentage points and gross capital formation by 0.7 percentage point to the 6.5% increase of gross domestic product in the 2nd quarter of 2022. The balance of external trade as a whole increased the economic performance by 0.3 percentage point.
In 2nd quarter 2022 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy grew by 1.0%.
From the production approach, value added was up by 2.4% in services and by 1.0% in industry and was down by 33.6% in agriculture and by 2.8% in construction.
From the expenditure approach, the volume of household final consumption expenditure rose by 1.8%, that of social transfers in kind from the government by 1.1% and the volume of the actual final consumption of the government by 0.3% out of the components of actual final consumption. Gross fixed capital formation increased by 0.2%. In external trade, the volume of exports grew by 1.5% and that of imports by 0.5%.