GDP up slightly in Q4

In 4th quarter 2024 the volume of GDP was 0.4% higher according to raw data and 0.1% higher according to seasonally and calendar adjusted and reconciled data than in the same period of the previous year. The raw volume index in the second estimate was unchanged, while the seasonally and calendar adjusted and reconciled index became 0.1 percentage point lower compared to the flash estimate.

Production approach industry reduced its performance by 1.6%, within which manufacturing by 3.5% compared to the same period of the previous year. Among manufacturing branches, the largest contributors to the decrease were the manufacture of motor vehicles, trailers and semi-trailers and the manufacture of electrical equipment, while the manufacture of computer, electronic and optical products and the manufacture of coke and refined petroleum products slowed the fall in industry the most. The value added of construction was 3.1% and that of agriculture 13.5% lower than in the corresponding period of the previous year.

The gross value added of services increased by 2.1% in total. The highest increase (6.4%) occurred in accommodation and food service activities. The value added of arts, recreation and other service activities was up by 4.4% and those of financial and insurance activities and of professional, scientific, technical and administrative activities both by 2.9%. The performance of wholesale and retail trade increased by 2.8% and that of human health and social work activities by 2.7%. The value added of information and communication grew by 2.5% and that of transportation and storage by 1.4%. The performance of education became 1.2%, that of public administration 1.1% and the performance of real estate activities 0.1% larger.

The 0.4% increase in gross domestic product in the 4th quarter of 2024 was due to the growth in services (by 1.3 percentage points). Within services, wholesale and retail trade as well as professional, scientific, technical and administrative activities had the largest contribution to the increase in GDP. The performance of industry and agriculture lowered the performance of the economy by 0.4 percentage point each and that of construction did so by 0.2 percentage point. The balance of taxes and subsidies on products did not affect the performance of the economy significantly.

Expenditure approach the actual final consumption of households rose by 4.3% compared to the same period of the previous year. Household final consumption expenditure, representing the largest proportion of the components of the actual final consumption of households, was up by 5.4%. The (domestic) consumption expenditure of households realised on the territory of Hungary became 4.8% higher. The volume of domestic consumption expenditure increased in all durability groups: by 12.0% in the case of durable goods, by 1.8% for semi-durable goods, by 4.4% in the case of non-durable goods and by 4.6% for services.

The volume of social transfers in kind from the government went down by 1.1% and that of the actual final consumption of the government by 6.2%. The volume of social transfers in kind from non-profit institutions serving households (NPISHs) grew by 1.1%.

As a result of the above trends, actual final consumption increased by 2.6%.

Gross fixed capital formation fell by 10.8% in the 4th quarter compared to the corresponding period of the previous year. Both the volume of investments in construction and that of investments in machinery and equipment went down.

Gross capital formation decreased by 2.2% compared to the same period of the previous year.

As a result of the trends of consumption and of capital formation, domestic use as a whole grew by 1.2% in the 4th quarter.