Investment

Based on raw data in the 3rd quarter of 2020 the volume of developments was 12% lower compared to the same period of the previous year and by 2.1% (seasonally adjusted) compared to the previous quarter. Investments declined in most sections, however in relation with the pandemic situation in healthcare they almost doubled. In addition investment volume grew in several, overall smaller weight carrying fields e.g. trade (6.3%), information, communication (3.4%), public administration (2.1%). The general decline in investment was mainly due to larger companies, among these especially foreign-owned enterprises and state-owned companies moderated their developments. During the first three quarters of 2020 investment volume declined in total by 8.6% compared to the high base of the previous year.

The performance of the Hungarian economy grew by 2.2% in the 1st quarter of 2020, which is a significant tempo-decline compared to the 4-5% increase of the previous two years. The coronavirus epidemic, spreading worldwide by March, severely impacted Hungarian output in the second part of the month. Processes of the world economy, already tainted by tensions and negative expectations have been further damaged in January-February by the spread of the epidemic, impacting indirectly and unfavourably our national economy.

In 2018, the Hungarian economy performed 4.9% better compared to the previous year. In parallel with economic growth, the labour market continued to expand dynamically. An important pillar of GDP growth was the improvement in the willingness of economic stakeholders to invest and the use of EU funds. In 2018, among factors influencing population number, the number of births declined faster than that of deaths. So the natural decline of the population continued. The total fertility rate was the same as in 2017, and the inclination to have children was significantly above the 2011 low.