Investment volume in Hungary rose by an annual 18.8 percent in the second quarter, the Central Statistical Office (KSH) said on Thursday. In absolute terms, investments came to 2,400.3 billion (EUR 7.28bn) forints during the period.
Construction investments increased by 22.3 percent, reaching 1,381.3 billion forints. Machinery investments climbed by 15.2 percent and stood at 996.8 billion forints. Manufacturing sector investments jumped 29.7 percent, reaching 618.7 billion forints. Investments in the logistics sector were up 19.7 percent at 397.7 billion forints.
Real estate investments increased by 14.6 percent to reach 381.2 billion forints. Private sector investments were up 30.7 percent at 1,429.9 billion forints. Public sector investments increased by 20.9 percent to 353.1 billion forints.
Commenting on the data, Gábor Gion, state secretary at the finance ministry, said the dynamic expansion pointed to a stimulating business environment in the country. Currently, capacity expansion investments to the tune of 3,300 billion forints, or 8 percent of GDP, are under way in Hungary, he said. This points to further economic expansion in the future, he said.
In a statement to MTI, the finance ministry said that the first half of the year saw over 4,000 billion forints invested in the country. The government’s incentives, a good use of EU funding, a successful home purchase subsidy scheme and a good business environment have been instrumental in the increase, the statement said.
Investment in Hungary has been growing constantly since 2017, and is expected to grow further, the ministry said. Takarékbank chief analyst Gergely Suppán said high levels of business and consumer confidence support continued increase in investments. Full-year investment growth will be close to last year’s 17 percent, he said. K+H Bank senior analyst Dávid Németh put full-year investment growth a little over 15 percent.