Economic performance 2.4% lower in 2nd quarter than in 2nd quarter 2022, good performance of agriculture lowers decrease
The volume of gross domestic product decreased by 2.4% in Hungary in the 2nd quarter of 2023 according to raw data compared to the corresponding period of the previous year. According to seasonally and calendar adjusted and reconciled data, the performance of the economy lessened by 2.3% compared to the same period of the previous year and by 0.3% compared to the previous quarter. In the 1st half of 2023, the performance of the economy diminished by 1.7% according to both raw and seasonally and calendar adjusted and reconciled data compared to the same period of the previous year.
In 2nd quarter 2023:
The volume of GDP was 2.4% lower according to raw data and 2.3% lower according to seasonally and calendar adjusted and reconciled data than in the corresponding period of the previous year. The volume indices in the second estimate were unchanged compared with those issued in the flash estimate.
Production approach:
Industry reduced its performance by 5.7%, within which manufacturing by 4.0% compared to the same period of the previous year. Among manufacturing branches, the largest contributor to the decrease was the manufacture of chemicals and chemical products as well as food products, beverages and tobacco, while the manufacture of motor vehicles, trailers and semi-trailers slowed the fall in industry the most. The value added of construction was 6.0% lower than in corresponding period of the previous year, while that of agriculture was 67.9% higher than the low base in the same period of the previous year.
Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| NACE | Industries | 2022 | 2023 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| II | III | IV | I | II | ||
| A | Agriculture, forestry and fishing | 64.9 | 60.8 | 68.2 | 120.2 | 167.9 |
| B–E | Manufacturing, mining and quarrying and other industry | 104.2 | 110.0 | 102.8 | 96.8 | 94.3 |
| C | Of which: manufacturing | 105.1 | 110.7 | 103.4 | 98.5 | 96.0 |
| F | Construction | 100.3 | 101.7 | 101.2 | 91.4 | 94.0 |
| G–T | Services, total, of which: | 110.6 | 105.7 | 102.9 | 101.1 | 97.6 |
| G | Wholesale and retail trade | 108.2 | 104.7 | 99.3 | 93.9 | 87.4 |
| H | Transportation and storage | 120.3 | 111.3 | 108.1 | 95.1 | 93.8 |
| I | Accommodation and food service activities | 148.7 | 106.7 | 101.7 | 100.8 | 97.5 |
| J | Information and communication | 112.6 | 105.3 | 101.4 | 102.2 | 102.6 |
| K | Financial and insurance activities | 106.4 | 105.5 | 105.4 | 104.6 | 101.9 |
| L | Real estate activities | 106.8 | 104.2 | 105.3 | 101.2 | 100.5 |
| M–N | Professional, scientific, technical and administrative activities | 113.6 | 110.2 | 103.6 | 101.1 | 97.1 |
| O | Public administration, defence and compulsory social security | 100.8 | 99.8 | 98.3 | 98.8 | 98.9 |
| P | Education | 105.7 | 105.2 | 103.4 | 103.4 | 96.0 |
| Q | Human health and social work activities | 112.7 | 107.6 | 107.6 | 116.9 | 110.2 |
| R–T | Arts, entertainment, recreation and other service activities | 121.1 | 104.5 | 102.9 | 99.8 | 98.6 |
| GDP, total (at purchasers’ prices) | 106.5 | 104.0 | 100.4 | 99.1 | 97.6 | |
The gross value added of services decreased by 2.4% in total. The highest increase (10.2%) occurred in human health and social work activities. The performance of information and communication rose by 2.6%, that of financial and insurance activities by 1.9% and the performance of real estate activities by 0.5%. The volume of the value added of public administration lessened by 1.1%, that of arts, entertainment, recreation and other service activities by 1.4% and the volume of the value added of accommodation and food service activities by 2.5%. The performance of professional, scientific, technical and administrative activities shrank by 2.9%, that of education by 4.0%, the performance of transportation and storage by 6.2% and that of wholesale and retail trade by 12.6%.
Services contributed by 1.5 percentage points, industry by 1.0 percentage point, construction by 0.3 percentage point and the balance of taxes and subsidies on products by 1.2 percentage points to the 2.4% decrease in gross domestic product in the 2nd quarter of 2023. The good performance of agriculture slowed the decrease by 1.7 percentage points. Within services, it was human health and social work activities that lowered the most (by 0.4 percentage point) the decrease in GDP.
Expenditure approach:
The actual final consumption of households diminished by 1.6% 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, declined by 3.2%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 3.8% lower than a year earlier. The volume of domestic consumption expenditure was reduced by 9.0% in the case of non-durable goods and by 4.2% for semi-durable goods and grew by 0.1% and 0.7% among durable goods and services, respectively.
The volume of social transfers in kind from the government went up by 6.2% and that of the actual final consumption of the government by 2.3%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) became 1.8% larger.
As a result of the above trends, actual final consumption decreased by 1.0%.
Gross fixed capital formation fell by 15.6% in the 2nd quarter compared to the corresponding period of the previous year. The volume of investments in construction went down significantly, while that of investments in machinery and equipment rose. Out of the industries with the highest share of investments, growth was observed in manufacturing only, while the volume of developments decreased in the other areas.
Gross capital formation declined by 21.3% compared to the same period of the previous year.
As a result of the trends of consumption and of capital formation, domestic use as a whole shrank by 7.6% in the 2nd quarter.
Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| Items of use | 2022 | 2023 | |||
|---|---|---|---|---|---|
| quarter | |||||
| II | III | IV | I | II | |
| Household final consumption expenditure | 108.4 | 104.7 | 101.8 | 96.1 | 96.8 |
| Social transfers in kind from government | 106.8 | 103.0 | 99.9 | 104.7 | 106.2 |
| Social transfers in kind from NPISHs | 107.0 | 102.6 | 98.5 | 98.8 | 101.8 |
| Actual final consumption of households | 108.1 | 104.4 | 101.4 | 97.5 | 98.4 |
| Actual final consumption of government | 98.9 | 96.3 | 95.1 | 95.4 | 102.3 |
| Actual final consumption, total | 106.6 | 103.1 | 100.3 | 97.2 | 99.0 |
| Gross fixed capital formation | 106.1 | 101.2 | 91.0 | 94.0 | 84.4 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 105.3 | 99.4 | 95.6 | 91.9 | 78.7 |
| Domestic use, total | 106.2 | 102.0 | 98.9 | 95.1 | 92.4 |
| Exports, of which: | 109.9 | 116.4 | 112.1 | 106.6 | 100.2 |
| Exports of goods | 105.8 | 116.0 | 112.5 | 107.0 | 101.8 |
| Exports of services | 129.4 | 118.6 | 110.8 | 103.9 | 93.8 |
| Imports, of which: | 109.5 | 113.7 | 110.2 | 101.9 | 94.4 |
| Imports of goods | 106.0 | 112.8 | 110.9 | 101.7 | 94.9 |
| Imports of services | 132.1 | 119.5 | 107.8 | 101.8 | 91.1 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 106.5 | 104.0 | 100.4 | 99.1 | 97.6 |
a) For these items, the volume index is not applicable.
In the external trade of the economy, a surplus of 1,247 billion forints was generated at current prices. The volume of exports was up by 0.2% and that of imports decreased by 5.6%. In trade in goods, accounting for 83% of external trade, exports rose by 1.8%, while imports became 5.1% lower than a year earlier. Within the external trade of the economy, the exports of services (including tourism) decreased by 6.2% and their imports by 8.9% compared to the same period of the previous year.
Actual final consumption contributed by 0.7 percentage point and gross capital formation by 7.1 percentage points to the 2.4% decline in gross domestic product in the 2nd quarter of 2023. The balance of external trade as a whole lowered the decrease in the economic performance by 5.4 percentage points.
In 2nd quarter 2023 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy lessened by 0.3%.
From the production approach, the performance went up by 0.3% in industry and decreased by 0.4% in construction, by 0.8% in services and by 2.3% in agriculture.
From the expenditure approach, the volume of household final consumption expenditure stagnated out of the components of actual final consumption. The volume of social transfers in kind from the government rose by 1.1% and that of the actual final consumption of the government by 0.8%. Gross fixed capital formation fell by 5.8%. In external trade, the volume of exports went down by 3.1% and that of imports by 5.9%.