Fixed Investment in Hungary
The economy of Hungary recorded an average growth rate of 6.4% in fixed investments in the decade to 2022, above the 2.0% average for Eastern Europe. In 2022, fixed investment growth was 0.1%. For more investment information, visit our dedicated page.
Hungary Investment Chart
Hungary Investment Data
|Fixed Investment (ann. var. %)||16.3||12.8||-7.1||5.8||0.1|
GDP records best reading since Q4 2022 in the third quarter
According to a preliminary estimate, GDP dropped at a milder rate of 0.4% year on year in the third quarter, above the 2.4% contraction tallied in the second quarter. Q3's reading marked the smallest drop since Q4 2022. On a seasonally adjusted quarter-on-quarter basis, GDP expanded 0.9% in Q3, up from the previous quarter's flat reading. Q3's reading marked the best result since Q2 2022. A complete breakdown will be released on 1 December.
According to the press release, the year-on-year contraction came on the back of falling output in the industry and services sectors only partially offset by rising agricultural production.
The economy should bounce back next year. Declining inflation and interest rates, together with real wage growth, will translate into rebounds in household spending and investment. The industrial sector will also return to growth amid stronger external and domestic demand. A potential agreement with the EU on the disbursement of funds poses an upside risk.
Commenting on the outlook, ING’s Peter Virovacz and Dávid Szonyi stated: “As we see a significant quarterly GDP growth in the fourth quarter, the (statistical) carry-over effect will be positive in 2024. This means that a positive year-end could already lay the foundations for economic growth next year. In addition, consumption change could slowly turn positive in the coming quarters, in line with the gradual but slow recovery in consumer confidence and the parallel positive real wage growth. In addition, in a declining interest rate environment credit activity could also start to recover.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Hungarian investment projections for the next ten years from a panel of 17 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable investment forecast available for Hungarian investment.
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