Investments in Hungary have increased by 13.4 percent year-on-year.
In the first half of 2018, the volume of investment was up by 3,113 billion HUF. Investment was higher in almost every economic sector, and this has contributed to robust GDP growth.
In Q2 2018, the indicator showed growth of 15.3 percent year-on-year, totalling 1,852 billion HUF. The fact that the rate of quarter-on-quarter growth was 4.2 percent shows strong growth momentum.
The results have been due to the implementation of EU-funded projects, the housing boom resulting from the Government’s Housing Programme and a corporate income tax rate of 9 percent since 2017, made possible by the six-year wage and tax agreement.
According to MTI, the EU’s lowest CIT rate is also expected to make Hungary even more attractive for investment in the future.
Output in the construction sector gained 15 percent year-on-year, fuelled by the dynamically increasing volume of infrastructure and housing projects and was also a driver of investment growth in the second quarter.
Investment in machinery and equipment was also up by 16 percent year-on-year, thanks mainly to capacity expansion projects.
In the commercial accommodation and catering sector, the volume of investment grew by 21 percent, the construction sector increased by 29 percent, and an astonishing 67 percent growth was seen in the energy sector.