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INVESTMENT VOLUME CLIMBS 10.8% IN Q2 FROM LOW BASE

 

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