The positive industrial output trend continued in April 2015: output volume rose by 6.3 percent year-on-year, and thus it was the 20th consecutive month of output growth. In the initial four months of the year, output was up altogether by 7.6 percent. Expansion has been based on sound foundations, as out of the thirteen sub sectors of the manufacturing industry nine posted higher output and the industrial sector performed better in every region.

Output at the largest manufacturing sub sector, the vehicle industry, soared by 17 percent. The volume of production regarding the manufacturing of computers, electronic and optical products was 3 percent higher, while that of pharmaceuticals jumped by 9 percent year-on-year. Thanks to favourable domestic and foreign sales, the manufacturing of rubber, plastics and non-metallic mineral products – a sub sector of medium weight – posted double-digit growth of 14 percent. In the initial four months of the year, the volume of sales on foreign and domestic markets increased by 10 percent and 5.4 percent, respectively, compared to the same level one year ago.

Growth has been underpinned by the introduction of a three-shift work schedule at Audi and full-capacity production at Suzuki restarted in the beginning of March. While the realization of several large development projects and related supplier projects had a favourable impact on production, external demand growth has also been a positive factor.

The large amount of EU funding planned to be channelled to economic development is another expected driver of future growth: on 9 June the Government launched tenders valued at HUF 85bn to promote the development and boost the competitiveness of  micro-, small-, and medium-sized enterprises, but the funds for upcoming tenders later this year will total HUF 700bn. In the next seven years, the Hungarian Government will place special emphasis on industrial development and it aims to increase the industrial output-to-GDP ratio from the current 20-22 percent to 30 percent, the highest within the EU.

(Ministry for National Economy)