In a month-onmonth comparison, construction sector output grew by 4.6% in January, adjusted for seasonal and workday effects. In absolute terms, construction sector output reached 89.3 billion forints (EUR 288m) 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, economy minister Mihály Varga said on public news channel M1 after the release of the data.

He added that the figures suggested a “good year” ahead, and the sector’s output could contribute to a GDP growth of over 4% in 2017. Varga noted that the number of home construction permits issued last year exceeded 31,000, and said that 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%. ING Bank chief analyst Péter Virovácz noted that the marked January rise had come on a low base, but said a 20% annual increase in the sector could add a full percentage point to GDP growth.

Republished with permission of Hungary Matters, MTI’s daily newsletter.