Press release, 17.06.2024.
Industrial value chain length and territorial concentration
HCSO publishes new experimental statistics
The novelty of the new experimental statistics jointly published by the Hungarian Central Statistical Office (HCSO) and the Budapest Metropolitan University (METU) is that it provides macro statistics on industrial productivity and its determinants calculated according to a new approach, based on a previously unused linkage of official statistics published by HCSO and Eurostat. In Hungary, industry has a significant weight in the national economy, accounting for 22% of gross value added in 2023, the 8th highest among EU Member States. The volume of national industrial production has more than doubled since the turn of the millennium, within which the period from 2013 to the coronavirus epidemic is outstanding, the 36% expansion experienced at that time was the second highest growth rate in the EU.
At the beginning of 2024, the HCSO launched a new online platform to publish its experimental statistics based on the latest innovative methodologies, alternative data sources and the previously unused linking of existing data. Experimental statistics allow to meet emerging data needs, cover currently perceived knowledge gaps and are able to provide effective support to policy-makers, the economic and scientific community and the society.
The experimental statistics on Industrial Value Chain Length and Territorial Concentration, produced jointly with the Budapest Metropolitan University, are novel in that they provide macro-statistics on industrial productivity and its determinants according to a new approach, based on a previously unused linkage of official statistics published by the Hungarian Central Statistical Office and Eurostat, thus extending the available information and showing the relationships between processes and effects in the national economy.
The experimental statistics reveal that the volume of industrial production in Hungary has more than doubled since the turn of the millennium. The period from 2013 to the coronavirus epidemic is also outstanding within this, industrial production expanded by 36%, which is the second highest value in the EU. The weight of industry in Hungary's economy is significant, accounting for 22% of gross value added in 2023, above the EU average (21%) and the 8th highest share among Member States. Industrial production is spatially more deconcentrated than the EU average: while in the EU the top tenth of the regions with the highest value added account for 41% of total value added, in Hungary (namely Budapest and Pest) they account for 29% of total value added. The capacity for new value creation is related to the length of value chains, which can be increased by growing the share of the domestic supply chain. The ratio of gross value added of the industrial sector to output in Hungary has been around 25 to 26% for a longer period, declining to 21% in 2022, due to high energy prices.
A further expansion of the experimental statistics is expected in the second half of 2024.
The statutory task of the Hungarian Central Statistical Office is to provide statistical data on the state and processes of the economy, society and the environment. The HCSO is committed to providing objective and transparent information to users and to fully and professionally responding to emerging market and policy needs. The data provided by the Office are comparable in a transparent manner, both internationally and nationally, and can therefore serve as an independent point of reference.
The publication is available at: www.ksh.hu/s/en/experimental-statistics/publications/industrial-value-chain-length-and-territorial-concentration/
Hungarian Central Statistical Office
H-1024 Budapest, Keleti Károly u. 5-7. Tel./Phone: (+36-1) 345-6000
Postacím/Postal address: P.O.Box 51 Budapest H-1525
http://www.ksh.hu