The decline in investments has persisted unabated for two years. In the first quarter of 2025, investments fell by 12.1% year-on-year according to unadjusted data from the Hungarian Central Statistical Office (KSH), and by 11.8% on a seasonally adjusted basis. Compared to the fourth quarter of 2024, the seasonally adjusted investment volume decreased by 3.4%. The manufacturing and logistics sectors are the biggest losers, while the real estate and energy sectors are showing some resilience.
Investment activity was last in positive territory at the beginning of 2023. Since then, more than a quarter of the volume has been lost. Compared to mid-2022, investments have even dropped by one third. With the exception of a few large-scale projects, the economy is adopting a wait-and-see approach, as the already low capacity utilization does not call for further expansion.
The government hopes that major projects set to launch at the end of the year will help stimulate the economy.