In the first quarter of 2022, HUF 2,450 billion (EUR 6 billion) were invested in Hungary, an increase of 8.7% year-on-year. Seasonally adjusted, this is the strongest quarterly volume. Compared to the fourth quarter, seasonally adjusted investments increased by 3.2%, for machines and equipment even by 6.0%.
Nevertheless, the public sector withdrew and its passivity was more than compensated for by companies and private households. Activity in the manufacturing and agricultural sectors increased by a fifth year-on-year, and in the real estate sector by a good tenth. Battery factories compensated for the slack in vehicle manufacturing, and enormous investments were also made in the food industry.
Analysts highlighted the historic record in investment activity, which is partly due to government subsidies for private-sector investment and low-interest loan programs by the central bank and various state financial institutions. Nevertheless, analysts drew attention to rising interest rates and energy prices as well as geopolitical risks, which could dampen companies’ willingness to invest.