In August 2014, construction sector output increased by 13.1 percent in comparison to the corresponding period of the previous year. Output was higher at both main groups of construction: it was up by 4.1 percent regarding the construction of buildings and by 22.5 percent within the civil engineering divisions. This positive trend has been in place for almost one year and a half now.
According to the latest data compiled by the Hungarian Central Statistical Office (KSH), wages in real terms were up by 2.9 percent in the initial eight months of the year. The number of people employed in the private sector – at enterprises with at least five employees – increased in August significantly, by 54 thousand in comparison to the same period of the previous year. In the initial eight months of this year, average gross wage was HUF 234 600 and, excluding public work schemes, it was HUF 246 400 in Hungary.
Following slight deterioration in the previous two months, business expectations have improved and the consumer confidence index was also higher in September 2014. As a whole, in the ninth month of the year, the seasonally adjusted GKI-Erste economic sentiment index edged up from -2.3 points from -4.3 points in August.
The International Monetary Fund (IMF) published its quarterly World Economic Outlook (WEO) report on 7 October. The paper predicts that the global economy will grow less than formerly anticipated, by around 3.3 percent in 2014 and 3.8 percent in 2015, which shows that in comparison to summer the institution cut expectations by 0.1 percentage point and 0.2 percentage points, respectively. In the case of Hungary, the Washington-based organization revised upward its prognosis in comparison to the previous quarter.
The number of people in employment has been nearing 4 million 200 thousand.
The upward employment growth has been unbroken in Hungary: in the period June-August 2014, the number of those in employment aged 15-74 years was up by 177 thousand, increasing from 3 million 981 thousand to 4 million 158 thousand year-on-year.
The post-crisis rebound of the eurozone’s economy has also helped Central and Eastern European countries to bolster their economies. According to the latest EBRD report, Hungary and Poland are the countries with the largest growth potential in the region. The subsequent revision in the middle of September, following the latest EBRD report of May, modified the former GDP forecasts.
In July 2014 – in line with preliminary data – the volume of industrial output jumped by 12.3 percent compared to the corresponding period of 2013. Hungary’s industrial sector showed an even larger increase only in February 2011, accordingly, the current figure is a three-year record high. The excellent result has been attributable to the vehicle manufacturing and related supplier sectors, but output growth recorded in July – and in the previous months within the food industry and the electronic consumer goods manufacturing sector have also significantly contributed to the increase in industrial output volume.
The tourism sector continues to deliver excellent results, as since February 2014 the number of tourism nights spent at accommodation establishments has been rising steadily. Improving domestic demand has been playing a key role in this trend.
In light of the latest data, the employment situation has continued to improve in Hungary. In the period May-July 2014, the number of people in employment aged 15-74 years was up by 164 thousand, from 3 million 963 thousand one year ago to 4 million 127 thousand. Accordingly, the employment rate improved from 51.9 percent to 54.3 percent in the same period. The growth of Hungary’s GDP in the second quarter was as much as 3.9 percent, which constitutes the largest increase within the EU28 bloc.
In June 2014, the volume of industrial output grew by 11.3 percent in comparison to the corresponding period of the previous year, according to both unadjusted and workday-adjusted data. In the initial six months of the year, output was up by 9.4 percent year-on-year, while compared to the month of May it increased by 1.8 percent in light of unadjusted and workday-adjusted statistics.