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Investment volume in Hungary rose 5.9% year-on-year in the fourth quarter, the lowest rate since Q4 2016, data released by the Central Statistical Office (KSH) show. In absolute terms, investments came to 3,752.2 billion forints (EUR 11.1bn) during the period. Construction investments increased by 8.9%, reaching 2,287.2 billion. Machinery investments climbed 1.6% and stood at 1,443.3 billion forints.
For the full year, investment volume rose 13.9% to 10,555.7 billion forints. The pace of growth slowed from 20.2% in 2018.
Construction investments increased by 16.3% to 6,165.0 billion forints and machinery investments climbed 11.1% to 4.305.6 billion forints. Manufacturing investments increased by 16.1% during the year, real estate investments by 16.9% and logistics investments by 15.1%. Investments in the central government sector, including defence and social security, were up 4.6%. In the commerce and vehicle repair segment, investments increased by just 1.9%, but in farm sector investment volume was up 8.5%. Investments in the education sector edged down 0.1%, investments in health and social services increased by 9.6% and they jumped 32.7% in arts and entertainment.
Finance Minister Mihály Varga said commenting on the KSH figures that the record-high investment carried out last year placed Hungary in the frontline in European Union comparison. Investment growth is expected to help economic performance in the coming years, with developments to further boost growth once new production capacities are in place, he said. “If investments are coming and outlooks are good then there is hope that more jobs will be created and capacities will expand in the years ahead,” he added.