Economic performance increases by 8.2% in 1st quarter
The volume of gross domestic product increased by 8.2% in Hungary in the 1st quarter of 2022 compared to the corresponding period of the previous year. According to seasonally and calendar adjusted and reconciled data, the performance of the economy rose by 2.1% compared to the previous quarter and by 8.0% compared to the corresponding period of the previous year.
In 1st quarter 2022 compared to corresponding period of previous year:
The volume of GDP rose by 8.2%. The raw volume index in the second estimate was unchanged compared with that issued in the flash estimate.
Production approach:
Industry increased its performance by 4.9%, within which manufacturing by 4.6% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the growth of industry were increases in the manufacture of fabricated metal products, except machinery and equipment, and food products. The value added of construction went up by 18.3% and that of agriculture decreased by 3.9% compared to the corresponding period of the previous year.
Table 1: Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year=100.0%)
| NACE code | Industries | 2021 | 2022 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| I | II | III | IV | I | ||
| A | Agriculture, forestry and fishing | 101.2 | 100.4 | 96.1 | 92.7 | 96.1 |
| B–E | Manufacturing, mining and quarrying and other industry | 103.7 | 135.3 | 102.6 | 102.1 | 104.9 |
| C | Of which: manufacturing | 104.4 | 138.4 | 102.7 | 101.9 | 104.6 |
| F | Construction | 93.9 | 118.4 | 120.1 | 121.3 | 118.3 |
| G–T | Services, total, of which: | 97.1 | 112.9 | 106.9 | 108.2 | 109.9 |
| G | Wholesale and retail trade | 101.0 | 116.8 | 105.7 | 104.3 | 109.4 |
| H | Transportation and storage | 89.2 | 114.7 | 112.5 | 120.3 | 120.4 |
| I | Accommodation and food service activities | 52.6 | 170.9 | 122.7 | 168.7 | 180.8 |
| J | Information and communication | 107.7 | 117.1 | 116.7 | 114.1 | 111.6 |
| K | Financial and insurance activities | 103.2 | 103.6 | 106.4 | 106.9 | 106.3 |
| L | Real estate activities | 94.7 | 106.2 | 104.9 | 104.5 | 105.4 |
| M–N | Professional, scientific, technical and administrative activities | 92.3 | 117.3 | 108.5 | 109.4 | 113.8 |
| O | Public administration and defence | 102.3 | 101.6 | 100.1 | 100.2 | 100.9 |
| P | Education | 97.3 | 109.1 | 99.4 | 102.2 | 102.9 |
| Q | Health and social work activities | 103.8 | 137.1 | 104.3 | 107.5 | 108.9 |
| R–T | Arts, entertainment and other services | 88.1 | 114.1 | 109.2 | 113.7 | 114.8 |
| GDP, total (at purchasers’ prices) | 98.1 | 117.8 | 106.2 | 107.1 | 108.2 | |
The gross value added of services became 9.9% higher in total. The most marked increases occurred in the areas of the economy where there was – consistently with restrictions taken to contain the pandemic – the largest fall one year earlier: the performance of accommodation and food service activities rose by 80.8%, that of transportation and storage by 20.4% and the performance of arts, entertainment, recreation and other services by 14.8% compared to the low base. The value added of professional, scientific, technical and administrative activities also increased (by 13.8%) compared to a low base. There were also considerable growths in service industries the performance of which was at a high level in the 1st quarter of 2021, too: an increase of 11.6% occurred in information and communication, of 9.4% in wholesale and retail trade and of 6.3% in financial and insurance activities. The value added of public administration was 0.9%, that of human health and social work activities 8.9% and the value added of education 2.9% larger than in the same period of the previous year.
Services contributed by 5.3 percentage points, construction by 0.6 percentage point and industry by 1.2 percentage points to the 8.2% growth of gross domestic product in the 1st quarter of 2022. Within services, mainly wholesale and retail trade, the repair of motor vehicles and motorcycles, and accommodation and food service activities increased GDP (by 1.4 percentage points).
Expenditure approach:
The actual final consumption of households rose by 11.5% compared to the same period of the previous year. Household final consumption expenditure, representing the largest proportion of the components of the actual final consumption of households, increased by 14.1%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 15.0% higher than a year earlier. The volume of domestic consumption expenditure grew by 23.3% in the group of services, by 23.2% in that of semi-durable goods, by 14.7% in the case of durable goods and by 4.6% for non-durable ones.
The volume of social transfers in kind from the government became 1.9% and that of the actual final consumption of the government 6.4% higher. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) rose by 1.5%.
As a result of the above trends, actual final consumption increased by 10.6%.
Gross fixed capital formation grew by 13.2% in the 1st quarter compared to the corresponding period of the previous year. The volume of investments in construction went up to a higher extent than that of investments in machinery and equipment. Out of the industries with the highest share of investments, the volume of developments significantly rose in manufacturing as well as in real estate activities and fell in wholesale and retail trade.
Gross capital formation was up by 17.6% compared to one year earlier.
As a result of the trends of consumption and capital formation, domestic use as a whole grew by 11.5% in the 1st quarter.
Table 2: Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year=100.0%)
| Items of use | 2021 | 2022 | |||
|---|---|---|---|---|---|
| quarter | |||||
| I | II | III | IV | I | |
| Household final consumption expenditure | 94.1 | 109.8 | 106.7 | 108.2 | 114.1 |
| Social transfers in kind from government | 102.5 | 107.6 | 101.0 | 102.7 | 101.9 |
| Social transfers in kind from NPISHs | 103.4 | 103.3 | 101.3 | 103.7 | 101.5 |
| Actual final consumption of households | 95.9 | 109.1 | 105.6 | 107.1 | 111.5 |
| Actual final consumption of government | 111.5 | 99.9 | 105.5 | 100.4 | 106.4 |
| Actual final consumption, total | 98.2 | 107.6 | 105.6 | 105.9 | 110.6 |
| Gross fixed capital formation | 97.0 | 109.3 | 111.5 | 103.2 | 113.2 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 85.4 | 121.9 | 118.7 | 108.8 | 117.6 |
| Domestic use, total | 95.0 | 111.4 | 109.6 | 106.8 | 111.5 |
| Exports, of which: | 105.6 | 136.1 | 102.8 | 102.6 | 105.2 |
| Exports of goods | 111.5 | 137.4 | 99.8 | 99.3 | 102.0 |
| Exports of services | 81.2 | 130.5 | 115.7 | 118.6 | 123.1 |
| Imports, of which: | 102.5 | 126.7 | 107.0 | 102.0 | 108.3 |
| Imports of goods | 104.5 | 130.0 | 105.3 | 99.8 | 107.1 |
| Imports of services | 91.6 | 108.6 | 117.1 | 115.2 | 115.5 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 98.1 | 117.8 | 106.2 | 107.1 | 108.2 |
a) For these items the volume index is not applicable.
In the external trade of the economy a deficit of 474 billion forints was generated at current prices. The volume of imports went up at a higher rate (8.3%) than that of exports (5.2%). In trade in goods, imports became 7.1% and exports 2.0% higher than a year earlier. Within the external trade of the economy, the exports of services (including tourism) increased by 23.1% and their imports by 15.5% compared to the same period of the previous year.
Actual final consumption contributed by 7.7 percentage points and gross capital formation by 3.0 percentage points to the 8.2% increase of gross domestic product in the 1st quarter of 2022. The balance of external trade as a whole reduced the economic performance by 2.6 percentage points.
In 1st quarter 2022 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy grew by 2.1%.
From the production approach, value added was up by 2.5% in services, by 2.1% in industry, by 2.0% in agriculture and by 0.3% in construction.
From the expenditure approach, the volume of household final consumption expenditure rose by 2.4%, that of social transfers in kind from the government by 0.1% and the volume of the actual final consumption of the government by 1.6% out of the components of actual final consumption. Gross fixed capital formation increased by 4.4%. In external trade, the volume of exports grew by 3.1% and that of imports by 5.3%.