Following a year-on-year increase of 5.8 percent in November 2014, Hungary’s industrial output growth accelerated, as in December 2014 the sector expanded by 7.1 percent in comparison to the same period of the previous year.

Full-year output in 2014 was up by 7.6 percent compared to 2013. Minister of State for Economic Regulation Béla Glattfelder pointed out that in light of year-on-year data the sector has been expanding for the sixteenth consecutive month, and that has been fuelling not only domestic exports but the creation of jobs and the implementation of new investment projects.

In harmony with the re-industrialization policy of the Government, more and more emphasis is being placed on the vehicle manufacturing, electronics, logistics, food, informatics and healthcare sectors in order to increase the industrial output-to-GDP ratio to 30 percent. Thus, Hungary would become the country with the largest industrial sector not only in the region but within the entire EU, he added. These efforts are underpinned by the most extensive economic development programme of all time to be launched in Hungary: while in 2007-2013 only 16 percent of EU development funding was allocated for direct economic development, in 2014-2020 this share will be as high as 60 percent.

The volume of output regarding vehicle manufacturing jumped by 11 percent in last December, while that of food, beverages and tobacco products increased by 4.1 percent. The output at machinery and equipment manufacturers soared by some 24 percent. Output volume of electronic consumer goods skyrocketed, posting 62 percent growth in the observed period. Full-year growth in 2014 within the manufacturing sector reached 8.6 percent compared to 2013, the Minister of State said.

As Béla Glattfelder stressed several factors show that industrial sector expansion has been based on a sound footing: for example, in December 2014 ten out of thirteen manufacturing sub sectors recorded higher output; growth was underpinned by upward export and domestic consumption trends; and industrial output was up in each region. The Minister of State is expecting a lasting positive trend, as the total volume of new orders in December was up by 14 percent year-on-year. Within that, the volume of new export orders soared by more than 15 percent. In comparison to December 2013, the stock of orders was up by some 19 percent.

(Ministry for National Economy)