Hungary Infrastructure Report Q2 2015

BMI Research
March 18, 2015
73 Pages - SKU: BMI5496842
Countries covered: Hungary

Hungary Infrastructure Report Q2 2015

BMI View: The Fidesz party emerging victorious in both general and municipal elections in 2014 has provided political continuity for Hungary. The markets have responded well and construction output has increased 18.1% over the first nine months of 2014, with civil engineering the primary growth driver. BMI believes that the roads and rail subsector in particular will be adding impetus to infrastructure growth.

Hungary's construction sector is booming off the back of strong public investment and EU funding and BMI expects the construction sector to grow by 16.9% in 2014 and a further 7.7% in 2015. Exceptionally strong growth in Hungary's construction sector is not expected to be long term as we expect a rising fiscal deficit to necessitate a draw back in public investment. It is also likely that there will be a slowdown in spending in 2015, as the government enforces spending cuts. Between 2016 and 2024, we expect construction sector real growth to average 3.3% per year.



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