N

Hungary's construction sector output is up by 18.5 percent

Hungary’s construction sector output was up by 18.5 percent in January after falling for twelve months in a row

Hungary’s construction sector output was up by 18.5 percent in January after falling for twelve months in a row.

According to the Central Statistical Office (KSH), building construction output was up by 32.8 percent while civil engineering output fell by 3.0 percent.

In a month-on-month comparison, construction sector output grew by 4.6 percent in January, adjusted for seasonal workloads. In absolute terms, construction sector output reached 89.3 billion HUF (288m EUR) in January.

The big January increase in the sector was supported by improved absorption of European Union funding as well as the government’s CSOK home subsidy scheme for families with children.

According to MTI, figures suggest a “good year” ahead, and the sector’s output could contribute to a GDP growth of over 4 percent in 2017.

The number of home construction permits issued last year exceeded 31,000, and that number was expected to further increase this year. The government’s aim is to help increase the ratio of home construction within the sector to above 10-12 percent.