Last year, the volume of investment saw the largest increase in 17 years, as it soared by 14 percent and exceeded HUF 5200bn.

Data confirm that investment has contributed to recent GDP growth in an outstanding manner, by more than 20 percent. It is especially encouraging that investment grew in the majority of economic sectors, altogether in 17 divisions. The main driver of massive GDP growth in the fourth quarter was the 24 percent increase in machinery-related investment, while construction sector investment was also higher, by 8.6 percent. Investment activity at the manufacturing sector, the division with the largest weight, improved further as the sector recorded investment growth of 12.7 percent. The key factors behind this increase were vehicle manufacturing-related suppliers. This implies that thanks to successfully implemented investment projects by car industry enterprises, the country has become even more attractive as FDI destination.

Along with the highly successful manufacturing industry investment projects, large-scale infrastructure development projects have also contributed to the 28 percent investment growth within the transportation and storage sector. In addition to these, healthcare investment soared by 17 percent, mainly as a result of the renovation of public buildings and hospitals. As a consequence of the Regional Operative Programme, the volume of investment rose by 16 percent at the hospitality and catering sector. In the fourth quarter, in the retail, energy, agricultural and science sectors the volume of investment increased by 14 percent, 12 percent, 11 percent and 33 percent, respectively.

The key factors behind the broad-based investment growth registered in several sectors of the national economy are continuing manufacturing sector orders, the successful utilization of EU funding, projects realized through the assistance of the Funding for Growth Scheme and low interest rates. Higher production capacity created by investment projects is adding to the performance of productive sectors which in turn secure economic growth in the near future.

(Ministry for National Economy)