The investment revitalisation continues

After the 4.2-percent growth in the 1st quarter of 2017, the Hungarian economy expanded by 3.2 percent in the 2nd quarter. The industry and foreign trade slowed down in the 2nd quarter, while building and construction, retail and tourism speeded up. In the first half of the year import grew 1.5 percentage points faster than export (calculated in euro). Following the 23-percent growth rate in the 1st quarter, investment expansion was a stunning 27 percent in the 2nd quarter – but this growth occurred from a very low base.

In May-July 2017 the unemployment rate was 4.2 percent, 0.8 percentage point lower than a year earlier. In the first half of the year the number of the employed was up 2 percent, but calculated without public workers the growth was 3.2 percent. In the first six months gross wages augmented by nearly 12 percent. In the 2nd quarter retail sales grew by 1 percentage point. In the first half of 2017 real wages improved by 9 percent, but retail sales only expanded by less than 4 percent. This shows that the increase in the minimum wage has entailed a decrease in ‘grey income’, and that Hungarians have probably paid back some of their debts. //

Attila Udvardi
GKI