In detail
The performance of the Hungarian economy increased in the 1st semester of 2024, following the setback of 2023: the volume of domestic GDP surpassed by 1.3% the one year earlier level. Hungary’s growth rate was higher than the EU average, placing the country in the first half of the ranking.
The growing performance of services was the main reason of the economic upturn on production side, while the industrial decrease held the growth significantly back. The performance in the majority of service sections was higher year-on-year, among these the upturn in real estate activities, and in construction from goods producer sections contributed the most to the GDP volume increase. On consumption side households’ increasing expenditures and the improving balance of the external trade resulted in economic upturn. At the same time a constant lessening in gross fixed capital formation held the GDP growth back, owing, among others, to postponements in state-orders and high interest rates. Real earnings increase supported households’ consumption. The fact that the volume of import of goods decreased overall in a greater extent than that of export, and the price of imported energy carriers was lower year-on-year played a part in the improvement of the balance of the external trade.
Although the disinflation process, since the beginning of 2023, came to a stop in April 2024, the 3.7% consumer price growth of the 1st semester is in line with the regional trend. Domestic inflation in the 1st semester of 2024 was primarily determined by the slight increase in food prices, household energy and consumer durable goods becoming less expensive, the relative high volatility of fuel prices and the long-lasting high inflation of service prices. The fact that agricultural producer prices lessened by 20%, the industrial ones decreased by 2.3% year-on-year, in regard to the external trade the import of goods became 2.6% cheaper, all these had an impact on the inflation trend of the 1st semester of 2024. At the same time construction producer prices continued to grow, by 6.3%.
In regard to the divisions, the volume of industrial production lagged behind the one year earlier level by 3.3%, within it manufacturing output lessened by 4.1%, that of the energy industry grew by 7.2%. Within manufacturing output decreased in the majority of the subsections, being moderated by the volume growth in the greater weight carrying food, beverage and tobacco production (by 7.1%), the manufacture of chemicals and chemical products (by 1.3%), and in wood, paper and printing industry (by 0.4%).
Construction output grew in the 1st semester of 2024, year-on-year, by 5.1% at comparative prices. A total of 6027 dwellings have been put into use during the 1st semester, 18% fewer than in the 1st semester of 2023. Rent continued to increase in the 1st semester of 2024, these were on national average 10.3% higher in June, year-on-year. Rents’ normal growth rate was significantly higher than that of inflation, as such their real value surpassed the one year earlier level by 6.4%. The volume of the end-of-June stock of contracts in construction was 1.5% higher year-on-year, the number of buildings to be built based on building permits and simplified registrations issued in the 1st semester lagged behind the 1st semester of 2023 level by 18%. The calendar adjusted volume of retail trade grew by 2.7% in January–June 2024, year-on-year. Sales volume of specialised and non-specialised food shops surpassed the 1st semester of 2023 value by 3.8%, and by 1.4% the retail units selling non-food goods. Turnover at fuel stations grew by 2.1%.
Guest spent 17 million 821 thousand tourism nights at accommodation establishments in January–June, surpassing by 7.6% the same period of the previous year data. The accommodation establishments’ 1st semester of 2024 turnover growth has been generated by the 12% increase in foreign tourism nights and a 3.0% growth in the domestic one. The volume of turnover in food and beverage service activities has been steadily increasing since December 2023. A HUF 1232 billion sales revenue has been achieved in the 1st semester of 2024, 5.8% higher year-on-year.
The performance of freight transport surpassed the same period of the previous year’s level by 2.5%, the achievement of the two areas developed in opposite ways: the domestic one dropped by 5.8%, the international grew by 6.5% compared to January–June 2023. In the 1st semester of 2024, rider numbers in passenger transport increased by 0.6% in local transport, by 41% in intercity compared to the same period of the previous year. Passenger traffic at the Liszt Ferenc International Airport grew by 18% in the 1st semester of 2024, year-on-year, surpassing the pre-pandemic 1st semester of 2019 level by 6.9%.
Based on major livestock data as of 1 June 2024, swine and chicken stock grew by 7.8% and 3.1%, sheep and cattle stock decreased by 0.4% and 1.3% year-on-year.
Among population number impacting factors, 9.6% fewer children were born in January–June 2024 and mortality decreased by 3.5% compared to the same period of 2023. Natural decrease was 28 thousand persons in the 1st semester, 7.7% higher year-on-year.
The number of employed people in the 15–74 age group was 4 million 745 thousand in the 2nd quarter of 2024, 21 thousand (0.5%) more than in the 2nd quarter of 2023. Employment rate in the 15–64 age group grew in one year by 0.3 percentage points to 75.1%, this being the highest value considering the 2nd quarters of the past years. The average number of unemployed people in the 15–74 age group grew in the 2nd quarter by 23 thousand (12%) to 215 thousand, while unemployment rate increased by 0.4 percentage points to 4.3%, year-on-year. The proportion of people unemployed for at least one year was – as one year earlier - 36%, the average time for seeking a job increased from 9.5 to 10.0 months.
Gross average earnings of full-time employees amounted to HUF 634 800 in January–June 2024, 14.0% higher year-on-year, while average net earnings including tax benefits were HUF 436 900, surpassing the previous year’s January–June values by 13.8%. The change in average earnings was basically determined by the previously scheduled wage increases and the minimum wage- and guaranteed minimum wage hikes. Real earnings grew in the 1st semester of 2024 by 9.9% along with the 3.7% increase in consumer prices. The median value of gross earnings was HUF 507 400, representing a 15.9% increase year-on-year, the median value of net earnings including tax benefits was HUF 360 100, surpassing the one year earlier level by 16.2%.
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