This year, Hungarian industrial output growth has gathered speed, as in March 2015 output was 11.6 percent higher year-on-year, and this has been the nineteenth consecutive month when the sector showed expansion.

In comparison to the previous month, the sector grew by 2.6 percent, while it gained 8 percent quarter-on-quarter. The performance of the industrial sector as an economic growth engine has been gaining weight and that has been in line with the Government’s efforts aiming to increase Hungary’s industrial output-to-GDP ratio to the highest level within the European Union.

In March 2015, the volume of industrial exports and domestic sales were up by 14 percent and more than 11 percent, respectively.  The volume of output was higher in eleven out of the altogether thirteen manufacturing sub sectors, ranging between 1.5 percent and 25 percent.  Output at the sub sector with the largest weight -- vehicle manufacturing -- soared 19 percent. Output regarding the manufacturing of computers, electronic and optical products jumped by 11 percent; while that of food, beverages and tobacco products was 12 percent higher, year-on-year.

Thanks to favourable sales conditions on domestic and foreign markets, manufacturing output of rubber, plastics and non-ferrous metal products surged by 14 percent. The fact that in the first quarter the sector expanded in every Hungarian region indicates that growth has been based on a sound structure. Among the regions, the largest growth of 18 percent was registered in the Southern Great Plain region.

Domestic and German confidence indicators are very encouraging concerning the sector’s outlook. As Suzuki Hungary has launched a new model line at the end of March, Audi has adopted a three-shift work scheme, factory input prices have fallen and the oil price is subdued, industrial output is expected to rise further. The Government’s active industrial policy and the high share of EU funding planned to be allocated for economic development are two more factors seen to boost future growth.

(Ministry for National Economy)