Economic performance 0.9% lower in 1st quarter than in 1st quarter 2022
The volume of gross domestic product decreased by 0.9% in Hungary in the 1st quarter of 2023 according to raw data compared to the corresponding period of the previous year. According to seasonally and calendar adjusted and reconciled data, the performance of the economy fell by 1.1% compared to the same period of the previous year and by 0.3% compared to the previous quarter.
In 1st quarter 2023:
The volume of GDP was 0.9% lower according to raw data and 1.1% lower according to seasonally and calendar adjusted and reconciled data than in the corresponding period of the previous year. The volume indices compared to the corresponding period of the previous year in the second estimate were unchanged compared with those issued in the flash estimate.
Production approach:
Industry reduced its performance by 3.2%, within which manufacturing by 1.5% compared to the same period of the previous year. A decline in the energy industry contributed significantly to the narrowing in the performance of industry. Among manufacturing branches, the largest contributor to the decrease was the manufacture of chemicals and chemical products, while the manufacture of motor vehicles, trailers and semi-trailers and of electrical equipment slowed the fall in industry the most. The value added of construction was 8.6% lower than in corresponding period of the previous year, while that of agriculture was 20.2% higher than the low base in the same period of the previous year.
Volume indices of production of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| NACE | Industries | 2022 | 2023 | |||
|---|---|---|---|---|---|---|
| quarter | ||||||
| I | II | III | IV | I | ||
| A | Agriculture, forestry and fishing | 95.4 | 64.9 | 60.8 | 68.2 | 120.2 |
| B–E | Manufacturing, mining and quarrying and other industry | 105.0 | 104.2 | 110.0 | 102.8 | 96.8 |
| C | Of which: manufacturing | 104.6 | 105.1 | 110.7 | 103.4 | 98.5 |
| F | Construction | 116.3 | 100.3 | 101.7 | 101.2 | 91.4 |
| G–T | Services, total, of which: | 110.5 | 110.6 | 105.7 | 102.9 | 101.1 |
| G | Wholesale and retail trade | 108.2 | 108.2 | 104.7 | 99.3 | 93.9 |
| H | Transportation and storage | 121.0 | 120.3 | 111.3 | 108.1 | 95.1 |
| I | Accommodation and food service activities | 175.1 | 148.7 | 106.7 | 101.7 | 100.8 |
| J | Information and communication | 112.3 | 112.6 | 105.3 | 101.4 | 102.2 |
| K | Financial and insurance activities | 106.5 | 106.4 | 105.5 | 105.4 | 104.6 |
| L | Real estate activities | 105.7 | 106.8 | 104.2 | 105.3 | 101.2 |
| M–N | Professional, scientific, technical and administrative activities | 113.6 | 113.6 | 110.2 | 103.6 | 101.1 |
| O | Public administration, defence and compulsory social security | 101.3 | 100.8 | 99.8 | 98.3 | 98.8 |
| P | Education | 105.1 | 105.7 | 105.2 | 103.4 | 103.4 |
| Q | Human health and social work activities | 107.8 | 112.7 | 107.6 | 107.6 | 116.9 |
| R–T | Arts, entertainment, recreation and other services | 116.1 | 121.1 | 104.5 | 102.9 | 99.8 |
| GDP, total (at purchasers’ prices) | 108.2 | 106.5 | 104.0 | 100.4 | 99.1 | |
The gross value added of services increased by 1.1% in total. The most marked increase (16.9%) occurred in human health and social work activities. The performance of financial and insurance activities rose by 4.6%, that of education by 3.4% and the performance of information and communication by 2.2%. The volume of the value added of real estate activities was up by 1.2%, that of professional, scientific, technical and administrative activities by 1.1% and the volume of the value added of accommodation and food service activities by 0.8%. The performance of arts, entertainment, recreation and other services decreased by 0.2%, that of public administration by 1.2%, the performance of transportation and storage by 4.9% and that of wholesale and retail trade by 6.1% compared to the same period of the previous year.
Industry contributed by 0.9 percentage point, construction by 0.3 percentage point and the balance of taxes and subsidies on products by 1.0 percentage point to the 0.9% decrease in gross domestic product in the 1st quarter of 2023. The good performance of agriculture slowed the decrease by 0.5 percentage point and that of services did so by 0.7 percentage point. Within services, the decrease in GDP was lowered the most by human health and social work activities (by 0.8 percentage point) and by financial and insurance activities (by 0.2 percentage point).
Expenditure approach:
The actual final consumption of households diminished by 2.5% 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, declined by 3.9%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 4.2% lower than a year earlier. The volume of domestic consumption expenditure was reduced by 9.0% in the case of non-durable goods and by 2.3% for services and grew by 0.7% and 3.2% among semi-durable and durable goods, respectively.
The volume of social transfers in kind from the government went up by 4.7%, while that of the actual final consumption of the government became 4.6% lower. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) lessened by 1.2%.
As a result of the above trends, actual final consumption decreased by 2.8%.
Gross fixed capital formation fell by 6.0% in the 1st quarter compared to the corresponding period of the previous year. The volume of investments in construction went down, while that of investments in machinery and equipment rose. Out of the industries with the highest share of investments, growth was observed in manufacturing and in the case of real estate activities, while the volume of developments declined in the areas of transportation and storage.
Gross capital formation fell by 8.1% compared to the same period of the previous year.
As a result of the trends of consumption and of capital formation, domestic use as a whole decreased by 4.9% in the 1st quarter.
Volume indices of final use of gross domestic product (GDP)
(corresponding period of previous year = 100.0%)
| Items of use | 2022 | 2023 | |||
|---|---|---|---|---|---|
| quarter | |||||
| I | II | III | IV | I | |
| Household final consumption expenditure | 112.0 | 108.4 | 104.7 | 101.8 | 96.1 |
| Social transfers in kind from government | 103.3 | 106.8 | 103.0 | 99.9 | 104.7 |
| Social transfers in kind from NPISHs | 103.0 | 107.0 | 102.6 | 98.5 | 98.8 |
| Actual final consumption of households | 110.2 | 108.1 | 104.4 | 101.4 | 97.5 |
| Actual final consumption of government | 105.1 | 98.9 | 96.3 | 95.1 | 95.4 |
| Actual final consumption, total | 109.4 | 106.6 | 103.1 | 100.3 | 97.2 |
| Gross fixed capital formation | 110.9 | 106.1 | 101.2 | 91.0 | 94.0 |
| Changes in inventoriesa) | x | x | x | x | x |
| Acquisitions less disposals of valuablesa) | x | x | x | x | x |
| Gross capital formation, total | 114.9 | 105.3 | 99.4 | 95.6 | 91.9 |
| Domestic use, total | 110.2 | 106.2 | 102.0 | 98.9 | 95.1 |
| Exports, of which: | 109.1 | 109.9 | 116.4 | 112.1 | 106.6 |
| Exports of goods | 104.3 | 105.8 | 116.0 | 112.5 | 107.0 |
| Exports of services | 134.8 | 129.4 | 118.6 | 110.8 | 103.9 |
| Imports, of which: | 110.9 | 109.5 | 113.7 | 110.2 | 101.9 |
| Imports of goods | 109.7 | 106.0 | 112.8 | 110.9 | 101.7 |
| Imports of services | 118.2 | 132.1 | 119.5 | 107.8 | 101.8 |
| External balance of goods and servicesa) | x | x | x | x | x |
| Gross domestic product (GDP), total | 108.2 | 106.5 | 104.0 | 100.4 | 99.1 |
a) For these items, the volume index is not applicable.
In the external trade of the economy a surplus of 475 billion forints was generated at current prices. The volume of exports went up at a higher rate (by 6.6%) than that of imports (by 1.9%). In trade in goods, accounting for 85% of external trade, exports became 7.0% and imports 1.7% higher than a year earlier. Within the external trade of the economy, the exports of services (including tourism) increased by 3.9% and their imports by 1.8% compared to the same period of the previous year.
Actual final consumption contributed by 2.1 percentage points and gross capital formation by 3.3 percentage points to the 0.9% decline in gross domestic product in the 1st quarter of 2023. The balance of external trade as a whole lowered the fall in the economic performance by 4.4 percentage points.
In 1st quarter 2023 compared to previous quarter, according to seasonally and calendar adjusted and reconciled data:
The performance of the economy decreased by 0.3%.
From the production approach, performance was up by 70.6% in agriculture and by 0.1% in services and lessened by 3.9% in industry and by 7.5% in construction.
From the expenditure approach, the volume of household final consumption expenditure diminished by 2.1% out of the components of actual final consumption. The volume of social transfers in kind from the government rose by 1.1%, while that of the actual final consumption of the government became 0.2% lower. Gross fixed capital formation was up by 1.4%. In external trade, the volume of exports increased by 1.3% and that of imports lessened by 0.4%.