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Regional Disparities of GDP in Hungary, 2007

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Regional Disparities of GDP in Hungary, 2007 23/2009 Compiled by: Hungarian Central Statistical Office www.ksh.hu Issue 23 of Volume III 25 September 2009 Regional disparities of GDP in Hungary, 2007 in Western Transdanubia and Central Transdanubia, respectively. The Contents order of the three regions was unaltered according to regional GDP cal- culations dating back for 14 years. The remaining four regions (lagging 1 Gross domestic product per capita behind the national average by 32%–37%) reached nearly the same level 2 Gross value added each: Southern Transdanubia kept its fourth position for ten years, pre- 3 International comparison ceding Southern Great Plain. Northern Hungary overtook Northern Great Plain in 2004, which order remained unchanged. Charts 4 The per capita indicator changed at different rates region by region in 7 Tables the previous year: the growth was the highest in Central Transdanubia (10%) and the lowest in Western Transdanubia (5%). Differences between regions were similar in the period under review as in 2006. The GDP per capita in the most developed region of the country (Central According to data for 2007 on the regional distribution of gross domes- Hungary) was invariably 2.6 times higher than in the one ranked last tic product regional disparities did not change significantly compared to (Northern Great Plain). Leaving out of consideration the figure for the previous year. Hungary’s gross domestic product measured at cur- Central Hungary – that includes the capital city – Western Transdanubia rent purchase prices amounted to HUF 25,479 billion in 2007, nearly the has the highest GDP per capita, which differs from the indicator value of half (47%) of which was produced in Central Hungary. 37% of the coun- Northern Great Plain by an essentially lower factor of 1.6. try’s total gross domestic product was produced in Budapest due to its leading position. Transdanubia accounted for 26.5% of GDP, and the Table 2 Great Plain and North large region as a whole also represented nearly Gross domestic product per capita by region the same proportion. The respective shares of the three large regions in 2007 were similar to those recorded in the previous year. GDP per capita, Difference from the Table 1 Region thousand HUF national average, % 2006 2007 2006 2007 Gross domestic product (GDP) by region Central Hungary 3 911 4 162 65.7 64.3 GDP (at purchasers’ prices) Central Transdanubia 2 141 2 357 –9.3 –7.0 Region billion HUF distribution, % Western Transdanubia 2 369 2 487 0.4 –1.9 2006 2007 2006 2007 Southern Transdanubia 1 598 1 730 –32.3 –31.7 Northern Hungary 1 512 1 627 –36.0 –35.8 Central Hungary 11 203 12 008 47.1 47.1 Northern Great Plain 1 491 1 596 –36.8 –37.0 Central Transdanubia 2 372 2 607 10.0 10.2 Southern Great Plain 1 564 1 692 –33.7 –33.2 Western Transdanubia 2 369 2 483 10.0 9.7 Country total 2 361 2 534 – – Southern Transdanubia 1 549 1 668 6.5 6.5 Northern Hungary 1 899 2 024 8.0 7.9 Northern Great Plain 2 280 2 426 9.6 9.5 In 2007 similarly to the last few years no significant changes were Southern Great Plain 2 104 2 265 8.8 8.9 observed in the ranking of the capital city and counties, either. The out- Country total 23 775 25 479 100.0 100.0 standing per capita indicator of the capital city (accounting for more than double the national average) was not approximated by any of the counties. Four Transdanubian counties were positioned above or near the national average. In 2007 some three quarters of counties besides Gross domestic product per capita the capital city did not change their position compared to the ranking in The value of gross domestic product per capita amounted to HUF 2 mil- the previous year, while 3 counties changed place with another 3. Three lion 534 thousand in Hungary in 2007, 7.3% more than one year earlier. counties in Transdanubia, two in Great Plain and Heves county were Concerning the seven regions of the country regional disparities meas- involved in the change of place. The position of the last three counties ured in terms of the per capita indicator slightly decreased, while the (Békés, Szabolcs-Szatmár-Bereg, Nógrád) was unchanged in the past ranking of regions was unchanged compared to the previous year. five years. The difference between the most developed Budapest and the Central Hungary – which comprises the capital city – was still in the first least developed Nógrád county – the gap in terms of development – position, followed by Western Transdanubia, and Central Transdanubia increased continuously, reaching a factor of four and a half in 2006 and in position three. Out of these the GDP per capita was higher than the already 4.7 in 2007. Leaving out of consideration the figure for Budapest national average in Central Hungary, while 1.9% and 7% lower than that Győr-Moson-Sopron has the highest GDP per capita, which differs from 2 Regional Disparities of GDP in Hungary, 2007 Statistical Reflections 2009/23 the indicator of Nógrád county, representing the lowest value, by essen- increase in Southern Transdanubia as well, while the highest, one percent- tially lower factors of 2.3 in 2006 and 2.4 in 2007. age point decrease in the share of agriculture was recorded there, too. Figure 1 GDP per capita by county, 2007 Thousand HUF 6 000 5 000 4 000 3 000 2 000 1 000 0 Vas Pest Zala Fejér Tolna Békés Heves Nógrád Baranya Somogy Budapest Csongrád Veszprém Hajdú-Bihar Bács-Kiskun r-Moson-Sopron ő Gy Komárom-Esztergom Borsod-Abaúj-Zemplén Jász-Nagykun-Szolnok Szabolcs-Szatmár-Bereg GDP per inhabitant National av erage County av erage Due to the specific situation of the capital city the difference from the Industry and construction have a lower share in the performance of average calculated without Budapest better reflects the disparities between Central Hungary but over a third of the value added by these two indus- counties in terms of development. In 2007 the comparison with the coun- tries, too, are still produced there. Services branches represent an out- ty average shows that the classification of counties below the average standing 77.5% in the central region. somewhat changed compared to the previous year. Tolna county came closer to the average, while Veszprém county moved one category up to Figure 2 the below-110% interval. Thus the number of counties reaching above- Distribution of gross value added by main groups of industries average values grew to seven, and their distribution became more even. and by regions, 2007 Table 3 Central Hungary GDP per capita as a percentage of county average, 2007 Southern Transdanubia GDP per capita as a percentage of County Southern Great Plain county average Northern Great Plain Below average – 80.0 Békés, Nógrád, Szabolcs-Szatmár-Bereg Northern Hungary Bács-Kiskun, Borsod-Abaúj-Zemplén, 80.1 – 90.0 Jász-Nagykun-Szolnok, Somogy Western Transdanubia Baranya, Csongrád, Hajdú-Bihar, Heves, 90.1 –100.0 Central Transdanubia Tolna Above average 100.1–110.0 Veszprém, Zala 0% 20% 40% 60% 80% 100% 110.1–120.0 Pest Agriculture Industry , construction Serv ices 120.1–130.0 Fejér, Vas Győr-Moson-Sopron, Komárom- 130.1– Esztergom In 2007 the total share of industry and construction was 48% and 44%, respectively, in the Transdanubian regions ahead in the ranking. Similarly to former years an invariably high proportion, over half (59%) Gross value added of the gross value added by Komárom-Esztergom county in Central Various economic branches contribute to the gross value added to differ- Transdanubia was represented by these industries, primarily consistent ing degrees, therefore the economic structure of regions plays a decisive with the performance of manufacturing branches. Fejér county also has role in influencing disparities between regions in terms of the level of significant industrial potential. Its performance was determined by the development. At national level goods-producing branches represent some manufacture of basic metals. The share of machinery branches is out- 30% of the production of gross domestic product. Services are dominant standing in Győr-Moson-Sopron and Vas counties, two counties of almost in all of the regions, which dominance intensified compared to Western Transdanubia as well, primarily due to the manufacture of 2006. Central Transdanubia is the exception since industry and construc- motor vehicles, trailers and semi-trailers. tion dominate the economy of the region, and their importance increased Among the regions contributing to a lesser extent to the gross value further in 2007. The share of industry and construction was on the added produced by the country the importance of agriculture is higher Statistical Reflections 2009/23 Regional Disparities of GDP in Hungary, 2007 3 than the average in the regions of the Great Plain and in Southern was 57% in Southern Transdanubia, 58% in Southern Great Plain and Transdanubia. In 2007 a quarter of the gross value added by the agricul- 60% in Northern Great Plain. The position of the region of Central ture of the country was produced in the region of Southern Great Plain – Hungary as measured against the average of the European Union wors- within which nearly ten per cent in Bács-Kiskun county. Among the ened in comparison with 2006. The lag of Central Transdanubia behind regions having reached lower economic performance Northern Hungary the average somewhat decreased, while that of the rest of the regions is an exception, where industry and construction represent a relatively went up compared to the previous year.
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