The Central Statistical Office (KSH) has revealed that investment volume in Hungary rose by an annual 10.8 percent in Q2, albeit from a low pandemic base.
Official figures show that investments in machinery jumped by 23.9 percent and construction investments increased by 3.2 percent. In a quarter-on-quarter comparison, investment volume rose by a seasonally-adjusted 3.6 percent. In absolute terms, Q2 investments reached HUF 2,760 billion (EUR 7.9bn). Construction investments accounted for about 57 percent of the total. Private sector investments increased by 13.0 percent to HUF 1,580 billion, while public sector investments inched up 0.2 percent to HUF 354 billion. Manufacturing sector investments rose by 10.7 percent, construction sector investments jumped by 58.3 percent and investments in the commercial accommodations and catering sector increased by 19.8 percent.
Commenting on the KSH data, Finance Minister Mihály Varga said investments were at a record high in Q2, with a 10.8 percent growth from the same period a year earlier. The government’s development-friendly response to the economic fallout of the coronavirus crisis contributed to an uptick in the sector, he said. The government allocated HUF 4,000 billion to supporting investments last year, and will do the same in 2021, he said. Hungary’s 27.5 percent investment rate is one of the best in the European Union, he said.