Hungarian Central Statistical Office Report 2012. (Part 5)

Performance of branches

  • The number of the registered business units was 1 million 806 thousand at the end of 2012, almost 17 thousand more than one year before. The increase was due to the rise in the number of enterprises by nearly 15 thousand as well as the rise in that of non-profit organisations by more than 2 thousand. At the same time the number of the terminations increased further: mainly due to the cessation of a large amount of sole proprietors.
Budapest Széchenyi Lánchíd

Budapest Széchenyi Lánchíd

  • One of the most important factors of the economic growth is the innovation activities of enterprises: the introduction of new products or procedures and the opening of new markets. The research and development activities of enterprises promote future growth. Domestic research and development expenditures as a proportion of GDP (1.2%) have slightly increased in the past years, but were even so less than the EU average. The country’s position is relatively good in the ranking of the indicator compared to the 12 countries that joined last the EU.
  • In the past decade, up until 2008, the role of the enterprises strengthened in financing the research and development activities, since then – except for minor fluctuations – it has stagnated. In Hungary, 47.5% of all expenditures were financed by enterprises in 2011. In the past ten years the growth of the weight of the entrepreneurial sector has been indicated by the number of R&D units and staff number data in addition to the financing of expenditures.
  • The innovation activity is mainly typical for greater businesses. Compared to the pre-crisis period the number of innovations has decreased in the case of small-sized enterprises and has somewhat risen in the case of enterprises employing 50 or more people.
  • Productive branches account for some one third of gross value added, however, their output decreased by 4.3% compared to 2011. The weight and importance of services branches have risen for years: nearly twothirds of gross value added was generated in services branches in 2012. A part of domestic branches was principally influenced by the domestic environment or internal factors, while some branches are remarkably export-oriented, therefore they are exposed to changes in the international environment to a high extent.
  • The performance of crop production highly depends on weather conditions. The 2012 drought caused a fall in crop production, primarily in cereals, most specifically corn production.
  • In the case of livestock, the proportion of pig stock has dropped to half size, while cattle stock has dropped to four-tenths of its size in the last two decades. This latter one’s long-lasting decrease turned into an increase in 2011, which continued in 2012, as well. The last two years’ livestock increase was 10%, which could be better seen in the case of private farms (20%).
  • The agricultural producer prices rose by two digits in the past three years. A similar trend prevailed in the producer prices of crops and horticultural products. Live animals’ and animal products’ prices have been rising since 2004 except for year 2009.
  • Less people make less agricultural activities for additional income purposes, compared to the era of the regime change or even the turn of the millennium. It is to be feared that the transmission of experiences ends and the absence of the experience and knowledge will make it more difficult to restart this kind of additional income activity at later ages.
  • After a rise of 5.6% in 2011, the volume of the output of industry – accounting for more than one-fourth of the gross value added – decreased by 1.7% in 2012. According to the EU scale this figure puts Hungary into the middle range on the basis of such industry performance change, but it still positions us behind the Visegrád countries’ indicators. The export market sales moderated by 0.7%, the volume of domestic sales, that showed a decreasing tendency for the past five years, lagged behind by 3.9% from the figure from the year before.
  • The production volume of manufacturing, well indicating the private sector’s economic trends, lagged behind by 1.6% in 2012 from the previous year’s figure. Within the branch the volume of the investments has been rising year by year since 2010, on the whole by 39% within three years.
  • The engine of industrial production is the manufacture of transport equipment, which represents onefifth of manufacturing and whose volume was 8.5% higher in 2012 than a year earlier and expanded by 44% compared to the worst times of the crisis in 2009.
  • The production volume of construction has been decreasing since 2006. In 2012, the branch’s gross output moderated further (5.9%) compared to the previous year’s low base. The demand for the branch still remains at the bottom, mainly due to the fall of the construction and renovation of dwellings, which was recorded to be higher than in all previous years. In addition, for many long years now the undercapitalized branch has not been capable of disposing of the burden that is caused by the continuously reappearing gridlock.
  • In 2012, transport performances moderated. The goods transport performance decreased by 1.5% in 2012 following the slight increase in the former two years. Interurban passenger transport fell behind by 12% compared to 2011, in which Malév’s bankruptcy in February was a large contributing factor. The number of the urban public transportation users moderated by 1.9% in 2012. During the year, 107 thousand passenger cars were put into circulation for the first time in Hungary, 39% more than in 2011, which is considered to be a low base. The increase can be primarily explained by the increasing number of used cars put into circulation.
  • Innovations of information technology are still keeping the information communication sector on the move. Due to the dynamically expanding mobile internet the number of internet subscriptions was over 5.4 million in 2012. Due to the more and more common usage of the internet, the proportion of the consumers using online public administration or purchase is increasing.
  • The retail sale volume decreased by 2.1% in 2012, this fall was due to the moderating real wages and salaries as well as the speeding inflation and the consumption-related tax increases. Concerning the structure of the turnover, the proportion of the food and fuels has been increasing for years at the expense of the non-food products. From 2011 the number of retail shops started to grow again and it exceeded 145 thousand in 2012.
  • Tourism and catering were affected simultaneously by rising international tourism and narrowing domestic demand. In 2012, 3.6% more tourist arrivals and 4.8% more tourism nights were registered in total at public accommodation establishments compared to the previous year. International tourism rose by 9%, at the same time the number of domestic tourist arrivals slightly dropped, tourism nights spent by them, however, increased by 0.1%. In 2012, more foreigners visited Hungary, while the number of Hungarians travelling abroad moderated. The number of travellers taking part in a domestic overnight trip fell, as well.



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