In April 2016, the volume of industrial output was up by 5.3 percent, while in the initial four months of the year output rose by 1.5 percent year-on-year. The momentum that had been driving the sector after January 2010 is expected to return. Over the past six years, industrial output has gained 24.3 percent, while since the beginning of 2014 it has increased by 9.0 percent in Hungary.

Output growth was registered in 11 out of the altogether 13 industrial sub sectors. Favourable data were the result of increasing car industry output and the significant expansion of the electronics sub sector. The largest sub sector, manufacturing, posted growth of 6.1 percent. Among large sub sectors, output at motor vehicle manufacturers, which produce some one-third of total manufacturing output volume, was up by 7 percent compared to April 2015. Output at two largest manufacturing divisions showed diversion: output of road vehicles declined slightly, by 2.7 percent, while that of road vehicle components soared by 12.2 percent. The rubber products industry also registered output growth of 4.7 percent year-on-year. Following double-digit growth in the year 2015, in April 2016 the volume of industrial exports rose by 6.2 percent year-on-year.  The export volume of the motor vehicle industry, which constitutes some one-third of total manufacturing industry output, was up by 9.2 percent in April, while the other key sub sector – manufacturing of electronics – gained 12.8 percent compared to the corresponding period of the previous year.

EU funds available as of July 2015 and Government measures aimed at accelerating the transfer of these funds have also been underpinning robust industrial sector expansion and facilitating capacity growth.

Besides these factors, the Government’s industrial reform blueprint, the Irinyi Plan, has also been boosting medium-term capacities and output in some priority fields, such as the manufacturing of motor vehicles, machinery and equipment, health industry, food industry, green economy, info-communication and the defence industry.

(Ministry for National Economy)