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14th September, 2017

Industry slows down in July

Industrial production was up 0.2% year-on-year in July, down from 4% growth in June, the Central Statistics Office confirmed as it released its final figures on Wednesday.

Seasonally and workday-adjusted data show industrial output falling by 4.2% from June to July, as indicated in preliminary estimates.

Export sales volumes went up 1.1% while domestic sales expanded by 2.2%.

As analysts suspected, there was a large decline in automotive output, as vehicle exports were down 8.3% from one year earlier.

Most car factories scheduled their summer shutdown for July this year, which was not the case last year, the Statistics Office noted.

Output for the first seven months was 4.8% higher than in the same period of last year.

Exports, representing 65% of total sales, went up 5.2% and domestic sales increased by 3.6%.

New orders in manufacturing were down 2.5% year-on-year in July.

Overall, industrial orders were 2.9% lower. (napi.hu; portfolio.hu; magyarhirlap.hu; magyaridok.hu; origo.hu; nepszava.hu)
14th September, 2017

Palkovics: degrees pay off

The unemployment rate among young people with university or college degrees in Hungary is 2.5%, the lowest among OECD countries, higher education state secretary Laszlo Palkovics told state television channel M1 on Wednesday.

The unemployment rate among freshly trained skilled labour is 4.5%, he added.

Otherwise, among unskilled labour the unemployment rate is close to the OECD average.

Investment in human capital has a quick return in Hungary, Palkovics highlighted. (napi.hu; hvg.hu; 444.hu; magyarhirlap.hu; magyaridok.hu)
14th September, 2017

VAT doubts may halt housing boom

The present home construction boom might end if the government does not resolve the uncertainty surrounding the VAT on new home sales after 2019, according to Magyar Nemzet.

The VAT on new home sales now stands at 5%, a preferential rate in effect until the end of 2019.

The rate will increase automatically to 27% from 2020 if the government does not extend the validity of the lower VAT rate.

If the lower VAT is not extended beyond 2019, then several property developers could cancel their planned projects soon, as the average construction time is 18-24 months, CEO and owner Akos Balla of property agency Balla Ingatlanirodak warned.

At the moment 5,000-7,000 homes are being built in Budapest, he said. (mno.hu; napi.hu, portfolio.hu)
14th September, 2017

Cash in circulation hits new high

The total amount of cash in circulation reached Ft 4.815 trillion at the end of August, a new record high, the MNB announced.

This means that the per capita figure is about Ft 50,000, Napi calculated.

In August 1998, when the MNB began collecting such data, the total cash in circulation was Ft 704 billion. The figure rose to Ft 1.258 trillion by August 2002 and exceeded Ft 2 trillion in August 2007.

The amount of cash in circulation tends to be higher in countries where the black economy is large, Napi observes.

Economy Minister Mihaly Varga told the annual Economists Society meeting last week that the ministry is placing a high priority on limiting the expansion of cash. (napi.hu)
14th September, 2017

Godollo HEV line to be extended

The Budapest transport authority BKK has published its plans on its website on renewing the HEV line connecting Budapest with Godollo.

The new commuter train line will be connected to the M2 metro and will run below ground in some sections.

The Fomterv architectural firm office won the Ft 5 billion tender for the preparation works for the project, financed from EU funds, in January.

Some stations on the HEV line will be relocated reflecting the present population distribution.

A new side line to Rakoskeresztur will also be built. (magyaridok.hu; napi.hu)

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