Economic performance up by 0.9% in 3rd quarter 2023 compared to previous quarter but 0.4% lower than in same period of 2022
The volume of gross domestic product decreased by 0.4% in Hungary in the 3rd 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 diminished by 0.3% compared to the same period of the previous year and increased by 0.9% compared to the previous quarter. In quarters 1–3 of 2023, the performance of the economy went down by 1.2% according to both raw and seasonally and calendar adjusted and reconciled data compared to the same period of the previous year.
In 3rd quarter 2023:
The volume of GDP was 0.4% lower according to raw data and 0.3% 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 5.4%, within which manufacturing by 4.1% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the decrease were the food industry, as well as the rubber, plastics and building materials industries, while the manufacture of motor vehicles, trailers and semi-trailers slowed the fall in industry the most. The energy industry also significantly contributed to the decrease in the performance of industry. The value added of construction was 1.6% lower than in corresponding period of the previous year, while that of agriculture was 88.2% 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 | ||||||
| III | IV | I | II | III | ||
| A | Agriculture, forestry and fishing | 67.5 | 76.0 | 126.7 | 166.6 | 188.2 |
| B–E | Manufacturing, mining and quarrying and other industry | 107.1 | 99.6 | 97.2 | 94.3 | 94.6 |
| C | Of which: manufacturing | 109.8 | 103.0 | 98.7 | 95.8 | 95.9 |
| F | Construction | 100.1 | 100.5 | 92.4 | 93.8 | 98.4 |
| G–T | Services, total, of which: | 106.7 | 104.2 | 100.6 | 97.2 | 96.9 |
| G | Wholesale and retail trade | 100.9 | 96.5 | 94.4 | 87.8 | 88.4 |
| H | Transportation and storage | 110.1 | 108.4 | 95.3 | 93.9 | 92.0 |
| I | Accommodation and food service activities | 115.2 | 110.6 | 101.1 | 92.0 | 100.8 |
| J | Information and communication | 105.0 | 101.9 | 102.4 | 101.4 | 102.1 |
| K | Financial and insurance activities | 94.9 | 94.8 | 102.2 | 100.2 | 98.7 |
| L | Real estate activities | 111.9 | 114.0 | 101.6 | 99.8 | 99.0 |
| M–N | Professional, scientific, technical and administrative activities | 112.6 | 106.9 | 101.8 | 95.3 | 93.6 |
| O | Public administration, defence and compulsory social security | 99.8 | 98.2 | 98.8 | 98.9 | 98.1 |
| P | Education | 95.1 | 92.5 | 101.8 | 97.7 | 100.5 |
| Q | Human health and social work activities | 120.0 | 119.5 | 109.5 | 110.2 | 108.8 |
| R–T | Arts, entertainment, recreation and other service activities | 109.4 | 107.5 | 99.8 | 99.0 | 98.9 |
| GDP, total (at purchasers’ prices) | 104.3 | 100.2 | 99.1 | 97.6 | 99.6 | |
The gross value added of services decreased by 3.1% in total. The highest increase (8.8%) occurred in human health and social work activities. The performance of information and communication was up by 2.1%, that of accommodation and food service activities by 0.8% and the performance of education by 0.5%. The value added of real estate activities decreased by 1.0%, that of arts, recreation and other service activities by 1.1% and the value added of financial and insurance activities by 1.3%. The volume of the value added of public administration shrank by 1.9%, the performance of professional, scientific, technical and administrative activities by 6.4%, that of transportation and storage by 8.0% and the performance of wholesale and retail trade by 11.6%.
Services contributed by 1.7 percentage points, industry by 0.9 percentage point, construction by 0.1 percentage point and the balance of taxes and subsidies on products by 1.1 percentage points to the 0.4% decrease in gross domestic product in the 3rd quarter of 2023. The good performance of agriculture slowed the decrease by 3.4 percentage points. Within services, it was human health and social work activities that lowered the most (by 0.3 percentage point) the decrease in GDP.
Expenditure approach:
The actual final consumption of households lessened by 0.9% 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, declined by 2.7%. The (domestic) consumption expenditure of households realised on the territory of Hungary diminished by 2.4%. The volume of domestic consumption expenditure became lower in all durability groups: by 5.8% in the case of non-durable goods, by 0.9% for semi-durable goods, by 0.2% for durable goods and by 0.4% among services.
The volume of social transfers in kind from the government went up by 6.4% and that of the actual final consumption of the government by 4.4%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) became 8.5% larger.
As a result of the above trends, actual final consumption lessened by 0.1%.
Gross fixed capital formation fell by 15.1% in the 3rd 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 substantially in the other areas.
Gross capital formation declined by 15.7% 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 became 5.2% lower in the 3rd quarter.
Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| Items of use | 2022 | 2023 | |||
|---|---|---|---|---|---|
| quarter | |||||
| III | IV | I | II | III | |
| Household final consumption expenditure | 104.5 | 102.3 | 95.5 | 96.5 | 97.3 |
| Social transfers in kind from government | 105.7 | 102.8 | 100.3 | 106.3 | 106.4 |
| Social transfers in kind from NPISHs | 106.3 | 102.2 | 98.8 | 100.2 | 108.5 |
| Actual final consumption of households | 104.8 | 102.3 | 96.4 | 98.1 | 99.1 |
| Actual final consumption of government | 98.2 | 96.3 | 94.9 | 101.0 | 104.4 |
| Actual final consumption, total | 103.7 | 101.3 | 96.1 | 98.6 | 99.9 |
| Gross fixed capital formation | 100.1 | 90.0 | 96.1 | 84.8 | 84.9 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 97.0 | 92.9 | 96.8 | 78.4 | 84.3 |
| Domestic use, total | 101.6 | 98.7 | 95.6 | 92.0 | 94.8 |
| Exports, of which: | 117.6 | 112.7 | 106.6 | 100.3 | 96.4 |
| Exports of goods | 117.4 | 113.3 | 107.0 | 101.9 | 95.1 |
| Exports of services | 118.9 | 110.7 | 103.9 | 93.7 | 101.8 |
| Imports, of which: | 113.9 | 110.8 | 102.3 | 94.0 | 91.3 |
| Imports of goods | 113.2 | 111.8 | 102.1 | 94.5 | 90.1 |
| Imports of services | 118.3 | 106.9 | 101.7 | 91.0 | 99.4 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 104.3 | 100.2 | 99.1 | 97.6 | 99.6 |
a) For these items, the volume index is not applicable.
In the external trade of the economy, a surplus of 1,285 billion forints was generated at current prices. The volume of imports went down at a higher rate (8.7%) than that of exports (3.6%). In trade in goods, accounting for 80% of external trade, imports dropped by 9.9% along with a 4.9% decrease in exports. Within the external trade of the economy, the exports of services (including tourism) grew by 1.8%, while their imports decreased by 0.6% compared to the same period of the previous year.
Gross capital formation contributed by 5.3 percentage points to the 0.4% decrease in gross domestic product in the 3rd quarter of 2023. The decrease in the economic performance was lowered by 5.0 percentage points by the balance of external trade1 as a whole, within which by 4.6 percentage points by the balance of trade in goods.
In 3rd quarter 2023 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy went up by 0.9%.
From the production approach, the performance went up by 0.6% in industry, by 2.7% in construction and by 3.4% in agriculture and decreased by 0.9% in services.
From the expenditure approach, the volume of household final consumption expenditure rose by 1.5%, that of social transfers in kind from the government by 1.2% and the volume of the actual final consumption of the government by 1.0% out of the components of actual final consumption. Gross fixed capital formation fell by 2.8%. In external trade, the volumes of exports and imports as a whole stagnated (0.1% and 0.0%, respectively).