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Jan 16, 2018

Hungary’s construction sector output rose by an annual 30.7 percent

The phenomenal increase came from a low base but still signals an improving economy and thriving construction sector

Hungary’s construction sector output rose by an annual 30.7 percent in November, the Central Statistical Office (KSH) has revealed.

The phenomenal increase came from a low base but still signals an improving economy and thriving construction sector.

According to MTI, output of the building segment rose by 29.1percent during the period. Output of the civil engineering segment climbed by 33.9 percent.

KSH stated that output of the building segment was driven by residential and school construction, as well as the construction of industrial buildings.

In the civil engineering segment, construction of highways and railways supported the increase.

Output at current prices was up at 261 billion HUF (844.5m EUR) from 186.4 billion HUF in November 2016. Stock of orders was up 110.3% at the end of November last year, albeit from a low base.

Mihály Varga, minister for National Economy, said that government measures such as the home purchase subsidies (CSOK), state-funded investments and VAT cuts in the sector have contributed to an upswing in home construction.

He also said the government is to launch a 20 billion HUF equipment procurement program in the construction sector to ease shortage of labour in SMEs with technology.