Hungary Infrastructure Report Q1 2015

Business Monitor International
December 24, 2014
73 Pages - SKU: BMI5432403
Countries covered: Hungary

Hungary Infrastructure Report Q1 2015

BMI View: Fidesz party emerging victorious in both general and municipal elections in 2014 haveprovided political continuity for Hungary. The markets have responded well and construction output hasincreased 18.1% over the first nine months of 2014, with civil engineering the primary growth driver.

Adding to the positive growth projections is BMI's view that Hungary will avoid the EU funding cuts.

However, debt reduction measures are likely to lead to further austerity measures, which will negativelyimpact infrastructure spending.

Hungary's construction sector is booming off the back of strong public investment and EU funding, andBMI expects the construction sector to grow by 16.9% in 2014 and further 7.7% in 2015. Exceptionallystrong growth in Hungary's construction sector is not expected to be a long term as we expect a rising fiscaldeficit to necessitate a draw back in public investment. It is also likely that there will be a slowdown inspending in 2015, as the government enforces spending cuts. Between 2016 and 2023, we expectconstruction sector real growth to average 3.5% per year.



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