HU: Balance of goods amounted to EUR 203 million in July

The value of export was 4.3% higher, that of import increased by 7.9% in EUR terms in July 2024 compared to the same period of the previous year. The balance of the external trade in goods deteriorated by EUR 362 million and hence it is amounted to EUR 203 million. Therefore, the YTD balance amounted to EUR 7.9 billion. July and also August usually bring moderate balances due to the summer holidays in manufacturing.

This was the first time since February 2023 when exports and imports both increased y/y. In short-term hazy outlook of the largest trading partner, Germany could be huge burden on exports. Good news is that the German government announced a new support program for the electric car purchases. On the other improvement in imports, besides a quite weak retail figure could be a sign of the awakening investments in early Q3. In the medium-term we could be more optimistic: enormous manufacturing investments, mainly in battery production and automotive sector (CATL, BMW, BYD, Mercedes), could bring favorable prospects. According to press information investments amount to more than EUR 10 billion are expected to launch in 2025. Although as the last months show the utilization of these enormous capacities could not happen without the significant improvement of the European economy.