Last year, the performance of the construction industry in Hungary accounted for one-fifth of the country's GDP growth, while construction investment made up 58 percent of all investments, according to data disclosed by the Ministry for Innovation and Technology (ITM). Nearly eight percent of employees work in the construction industry.
Anita Boros, State Secretary for Construction Economy, Infrastructure and Sustainability of the Ministry for Innovation and Technology (ITM), pointed out in the ministry's statement that in the construction industry, average monthly gross earnings increased by 13% last year, and full-time employees earned 287,900 forints on average.
Ms Boros reviewed the performance of the construction industry last year on the basis of the latest data from the Central Statistical Office. She pointed out that the gross added value of the construction industry increased by a further 21% in 2019, following an already significant increase in 2018. Production in the “new constructions” sector rose by 19%, while producer prices went up by an average of 9.7%.
The value of newly signed contracts measured with constant prices increased by 11%, and by 22% for new buildings.
The number of employees in the construction industry has been steadily growing since 2014, and since 2017, more and more construction companies have been founded. At the end of last year, 114,500 businesses were registered in the construction industry, 12% more than in 2018. In construction businesses with a minimum of 5 employees, the growth in 2019 reached 8.1%, and these companies had a total of 156,700 employees. The average earnings of full-time employees increased to 287,900 forints.
7.6% of those employed in the national economy worked in construction, including companies with less than 5 employees.
There was a lot of investment activity by players in the Hungarian national economy last year as well; the volume of investments grew by 14% compared to a year earlier. While the investment rate did not change significantly between 2010 and 2019 in the Visegrad countries, in Hungary it increased from 20.2% at the beginning of the decade to 28.6% by the end of 2019.
Construction investments accounted for 58%, i.e. more than half of all investments last year.
Investments in the construction industry have been continuously expanding since 2016. In 2019, the total amount spent on construction investment was 212.9 billion forints, which is 28% higher at constant prices than the year before.
Ms Boros highlighted that investment in construction, machinery and equipment also increased significantly last year. The 16% rise in construction investment exceeded the national average, and there was an 11% increase in machinery investment. The best performing areas were buildings and other structures, EU-funded infrastructure developments, state-funded cultural and sports facilities, market-funded office buildings, logistics halls, commercial units, and the construction of residential buildings.