Hungarian Q2 Investment Volumes Drop

Aug 31, 2007 - Investments in Hungary slipped 0.4% on a yearly basis, in the second quarter, the Hungarian statistical office, said Friday. Investments edged up a seasonally adjusted 0.1% on a sequential basis. The value of investments in the second quarter came in at 1025.8 billion forints.

In the second quarter, the volume of construction investments fell 8.2% on an annual basis, while investments in machines and equipment climbed 11.6%. Investments in manufacturing soared 26.4%, boosted by investments in manufacture of rubber and rubber products, electrical and optical equipment and transport equipment.

Investment volumes in the real estate, renting and business activities segments grew 6.9%, while investments in wholesale and retail trade advanced 3.3%. In comparison, the volume of investments in compulsory social security plunged 48.1%, owing to high base level in the previous year, the statistics office, observed. Investments in transport, storage and communications segment declined 8.5%, while investments in other community, social and personal service activities slumped 17.7% and electricity, gas and water supply eased 16.7%.

The value of investments in the first half of the year grew 0.2% annually to 1857.0 billion forints.