Economic performance increases by 0.4% in 4th quarter
The volume of gross domestic product increased by 0.4% in Hungary in the 4th 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 0.8% compared to the same period of the previous year and decreased by 0.4% compared to the previous quarter. The performance of the economy – according to both raw and seasonally and calendar adjusted and reconciled data – was 4.6% higher in 2022 than in the previous year.
In 4th quarter 2022:
The volume of GDP rose by 0.4% according to raw data and by 0.8% according to seasonally and calendar adjusted and reconciled data compared to the corresponding period of the previous year. The raw volume index in the second estimate was unchanged compared with the 4th-quarter figure issued in the flash estimate, while the seasonally and calendar adjusted and reconciled volume index lessened by 0.1 percentage point.
Production approach:
Industry increased its performance by 2.7%, within which manufacturing by 3.3% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the growth of industry were the manufacture of motor vehicles, trailers and semi-trailers and that of electrical equipment, and the manufacture of chemicals and chemical products slowed the growth of industry the most. The value added of construction went up by 0.9% and that of agriculture – owing to the severe drought – decreased by 32.3% compared to the corresponding period of the previous year.
Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| NACE | Industries | 2021 | 2022 | |||||
|---|---|---|---|---|---|---|---|---|
| quarter(s) | ||||||||
| IV | I–IV | I | II | III | IV | I–IV | ||
| A | Agriculture, forestry and fishing | 94.9 | 98.1 | 95.3 | 64.4 | 60.7 | 67.7 | 68.8 |
| B–E | Manufacturing, mining and quarrying and other industry | 99.7 | 106.2 | 105.0 | 104.0 | 110.1 | 102.7 | 105.4 |
| C | Of which: manufacturing | 101.5 | 108.9 | 104.4 | 105.0 | 110.8 | 103.3 | 105.8 |
| F | Construction | 115.8 | 109.2 | 116.3 | 100.3 | 101.7 | 100.9 | 103.0 |
| G–T | Services, total, of which: | 110.8 | 108.4 | 110.5 | 110.6 | 105.6 | 102.8 | 107.2 |
| G | Wholesale and retail trade | 105.8 | 107.0 | 108.2 | 108.6 | 104.8 | 98.7 | 104.6 |
| H | Transportation and storage | 115.4 | 103.6 | 120.6 | 120.4 | 111.6 | 108.0 | 114.3 |
| I | Accommodation and food service activities | 200.2 | 143.2 | 175.1 | 148.0 | 106.4 | 102.4 | 127.5 |
| J | Information and communication | 123.3 | 121.7 | 112.7 | 113.0 | 105.3 | 101.4 | 107.5 |
| K | Financial and insurance activities | 112.6 | 110.4 | 106.6 | 106.4 | 105.5 | 105.3 | 105.9 |
| L | Real estate activities | 106.4 | 104.0 | 106.0 | 106.5 | 104.3 | 105.9 | 105.7 |
| M–N | Professional, scientific, technical and administrative activities | 118.8 | 115.4 | 113.4 | 113.6 | 110.3 | 103.6 | 109.9 |
| O | Public administration, defence and compulsory social security | 101.2 | 101.9 | 101.4 | 100.8 | 99.8 | 98.3 | 100.1 |
| P | Education | 100.0 | 99.4 | 104.8 | 105.5 | 103.6 | 103.5 | 104.3 |
| Q | Human health and social work activities | 101.0 | 104.6 | 108.8 | 112.8 | 106.0 | 108.0 | 108.8 |
| R–T | Arts, entertainment, recreation and other services | 119.5 | 112.5 | 115.1 | 120.2 | 104.6 | 102.9 | 109.6 |
| GDP, total (at purchasers’ prices) | 107.4 | 107.1 | 108.2 | 106.5 | 104.0 | 100.4 | 104.6 | |
The gross value added of services became 2.8% higher in total. The most marked increases occurred in the industries of transportation and storage as well as human health and social work activities (both 8.0%). The performance of real estate activities rose by 5.9% and that of financial and insurance activities by 5.3%. The volume of the value added of professional, scientific, technical and administrative activities was up by 3.6% and that of arts, entertainment, recreation and other services by 2.9%. The value added of accommodation and food service activities grew by 2.4%, that of information and communication by 1.4% and the value added of education by 3.5%. The performance of wholesale and retail trade decreased by 1.3% and that of public administration by 1.7% compared to the same period of the previous year.
Services contributed by 1.7 percentage points, industry by 0.5 percentage point and construction by 0.1 percentage point to the 0.4% growth of gross domestic product in the 4th quarter of 2022. Within services, GDP was increased the most by real estate activities and by transportation and storage (by 0.5 percentage point for each). The decrease in the performance of agriculture slowed the growth by 1.0 percentage point and the decrease in the balance of product taxes and subsidies by 0.9 percentage point.
Expenditure approach:
The actual final consumption of households rose by 1.7% 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 2.1%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 1.8% higher than a year earlier. The volume of domestic consumption expenditure grew by 5.0% in the case of services and by 3.4% for both durable and semi-durable goods but decreased by 2.2% in the case of non-durable goods.
The volume of social transfers in kind from the government went up by 0.2%, while that of the actual final consumption of the government became 4.5% lower. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) lessened by 0.6%.
As a result of the above trends, actual final consumption increased by 0.7%.
Gross fixed capital formation fell by 8.6% in the 4th quarter compared to the corresponding period of the previous year. The volume of investments went down in the case of construction as well as machinery and equipment, to a higher extent in the former. Out of the industries with the highest share of investments, the volume of developments went on rising in manufacturing and declined in the areas of real estate activities as well as transportation and storage.
Gross capital formation diminished by 2.4% compared to the period one year earlier.
As a result of the trends of consumption and of capital formation, domestic use as a whole lessened by 0.2% in the 4th quarter.
Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| Items of use | 2021 | 2022 | |||||
|---|---|---|---|---|---|---|---|
| quarter(s) | |||||||
| IV | I–IV | I | II | III | IV | I–IV | |
| Household final consumption expenditure | 108.3 | 105.0 | 112.3 | 108.8 | 104.2 | 102.1 | 106.6 |
| Social transfers in kind from government | 100.1 | 100.7 | 103.9 | 107.2 | 104.9 | 100.2 | 104.0 |
| Social transfers in kind from NPISHs | 102.4 | 101.7 | 97.9 | 105.6 | 103.8 | 99.4 | 101.7 |
| Actual final consumption of households | 106.7 | 104.2 | 110.3 | 108.4 | 104.3 | 101.7 | 106.0 |
| Actual final consumption of government | 95.8 | 103.1 | 105.4 | 99.8 | 99.5 | 95.5 | 99.8 |
| Actual final consumption, total | 104.6 | 104.0 | 109.5 | 107.0 | 103.6 | 100.7 | 105.0 |
| Gross fixed capital formation | 100.2 | 105.2 | 110.6 | 106.2 | 104.1 | 91.4 | 102.2 |
| Changes in inventoriesa) | x | x | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x | x | x |
| Gross capital formation, total | 113.2 | 111.7 | 116.9 | 103.4 | 95.3 | 97.6 | 101.4 |
| Domestic use, total | 107.1 | 106.2 | 110.7 | 105.9 | 101.0 | 99.8 | 103.9 |
| Exports, of which: | 102.6 | 110.3 | 107.1 | 108.9 | 115.7 | 109.8 | 110.3 |
| Exports of goods | 99.3 | 110.3 | 101.9 | 104.0 | 114.2 | 108.5 | 107.0 |
| Exports of services | 118.5 | 109.9 | 137.2 | 132.7 | 122.1 | 115.6 | 125.9 |
| Imports, of which: | 102.1 | 109.1 | 109.4 | 108.1 | 111.5 | 109.2 | 109.5 |
| Imports of goods | 100.0 | 109.4 | 107.5 | 104.0 | 109.3 | 108.3 | 107.3 |
| Imports of services | 114.4 | 107.6 | 121.3 | 136.5 | 124.8 | 115.4 | 124.0 |
| External balance of goods and servicesa) | x | x | x | x | x | x | x |
| Gross domestic product (GDP), total | 107.4 | 107.1 | 108.2 | 106.5 | 104.0 | 100.4 | 104.6 |
a) For these items the volume index is not applicable.
In the external trade of the economy a deficit of 998 billion forints was generated at current prices. The volume of exports went up at a higher rate (by 9.8%) than that of imports (by 9.2%). In trade in goods, accounting for some 84% of external trade, exports became 8.5% and imports 8.3% higher than a year earlier. Within the external trade of the economy, the exports of services (including tourism) increased by 15.6% and their imports by 15.4% compared to the same period of the previous year.
Actual final consumption contributed by 0.5 percentage point to the 0.4% increase of gross domestic product in the 4th quarter of 2022, while gross capital formation slowed it by 0.6 percentage point. The balance of external trade as a whole raised the economic performance by 0.5 percentage point.
In 4th quarter 2022 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy decreased by 0.4%.
From the production approach, performance was up by 6.6% in agriculture, by 2.1% in construction and by 0.1% in services and lessened by 0.5% in industry.
From the expenditure approach, the volume of household final consumption expenditure rose by 0.3% out of the components of actual final consumption. The volume of social transfers in kind from the government and that of the actual final consumption of the government were unchanged. Gross fixed capital formation decreased by 5.8%. In external trade, the volume of exports diminished by 0.9% and that of imports by 1.4%.
In 2022 compared to previous year:
According to the first estimation, the value of GDP was 66,387 billion forints at current prices, and its volume increased by 4.6% compared to the previous year. (The performance of the economy rose by 4.6% according to calendar adjusted data, too.)
From the production approach, the volume of value added was up by 5.4% in industry, by 3.0% in construction and by 7.2% in services and became 31.2% smaller in agriculture.
Services contributed by 4.1 percentage points, industry by 1.0 percentage point and construction by 0.2 percentage point to the increase of GDP. Agriculture reduced the GDP growth by 1.0 percentage point.
From the expenditure approach, the actual final consumption of households rose by 6.0%, the actual final consumption of the government lessened by 0.2%, and as a total result of these, the volume of actual final consumption became 5.0% larger. Gross capital formation grew by 1.4%, within which gross fixed capital formation by 2.2%. The volume of exports increased by 10.3% and that of imports by 9.5%.
From the expenditure approach, actual final consumption contributed by 3.5 percentage points, gross capital formation by 0.4 percentage point and the balance of external trade as a whole by 0.7 percentage point to the growth of the economy.