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The investment rate has also increased from 20 to 27 percent

Investments in Hungary continue to grow.

As MTI reported, the Hungarian Central Statistical Office (CSO) has published the latest investment data, showing a 12.4 percent year-on-year increase in the third quarter of 2021 compared to the same period of the previous year.

Minister of Finance Mihály Varga said that the investment volume of around HUF 7.8 trillion in the first nine months of the year is almost double the 2010 figure while the investment rate has also increased from 20 to 27 percent.

Construction, which accounted for 60 percent of investments, saw an increase of 4 percent. The remaining 40 percent were in machinery and equipment, which was up 10 percent year-on-year.

The increase is now being mainly driven by the private sector, with firms with more than 50 employees accounting for 57 percent of investments, with a 22 percent increase in spending; meanwhile, investments by government agencies accounted for 13 percent and saw a decrease of 12 percent. 

On a sector basis, manufacturing accounted for a quarter of investments. The sector grew by 25 percent, affecting the most important sub-sectors: electrical equipment, transport equipment and food. The second most important sector in terms of investment was real estate, which accounted for 17 percent of investments and saw an increase of 5.7 percent, mainly due to an increase in commercial real estate. Investment in agriculture rose by 37 percent, albeit after a decline in previous quarters.

The minister stressed that the government’s measures are also reflected in investment figures; the home construction program, tax cuts and the thousands of billions of forints in subsidies to help businesses are significantly helping investment growth. 

Hungary now ranks among the top countries in the EU not only in terms of investment rate but also in terms of economic growth, and they are working to maintain this lead, Varga added.

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