Based on the May 2019 data of the Central Statistical Office, Hungary is at the vanguard of the region as regards industrial production which indicates the success of the programme seeking to lead industry into a new dimension which began in 2010.
“The latest favourable figures continue to stem from a rise in domestic sales which indicates a rise in the purchasing power of the Hungarian public. The goal is to protect the results achieved so far, so that this should not change even in the event of a downturn in the global economy,” László György, Minister of State for Economic Strategy and Regulation said.
Also in May 2019 the swift increase of industrial production continued. The volume of production increased by 8.7 per cent, while with working day adjustments it increased by 6.1 per cent compared with the corresponding period of last year. Since 2010, the domestic industry has expanded by more than 50 per cent, and with this result it outperforms both the regional competitor Czech Republic and the European Union.
“In Hungary the industry and the economy in general have not been in such a favourable situation since the fall of communism. In its summer forecast, the European commission has further upgraded Hungary’s economic growth projection as Hungary became the fastest-growing European economy in the first quarter. Compared with 3.7 per cent in its spring report, the European Commission has raised the 2019 growth rate of the Hungarian gross domestic product (GDP) to 4.4 per cent which is several times that of Western economies,” Mr György stressed.
The key sectors of Hungarian industry are doing well on a long-term basis, and therefore Brussels has been compelled to drastically improve its figures for Hungary.
In May, from among the main sub-sectors of the processing industry, the key sub-sectors produced the highest growth rates: the automotive industry – which is the single most significant sector and has more than doubled its output since 2010 – increased by 17.2 per cent (the production of road transport vehicles by 20.9 per cent), the electronics sector expanded by 6.6 per cent (the production of consumer electronics by 25 per cent), while the food industry grew by 5.4 per cent compared with the corresponding period of last year.
The volume of industrial exports increased by 8.8 per cent, while domestic sales expanded even more, by 9.2 per cent compared with May 2018. New processing industry export orders increased by 2.6 per cent, while new domestic orders increased by 3.9 per cent. It is a promising sign that at the end of May the total order portfolio exceeded the data of a year earlier by 7.1 per cent. “Industry is also boosted by a rise in domestic demand which indicates an increase in the purchasing power of Hungarian families. This is also the secret behind the fact that Hungary’s economic performance is second to none in the EU,” Mr György said.
“We must protect the results achieved as the EU and the international economy are showing signs of slowing down. The government has announced its economy protection action plan in order to enable the Hungarian economy to grow at a rate minimum two percentage points above the EU average also in the long term,” the Minister of State said in summary.