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Hungary Infrastructure Report Q3 2015

70 Pages BMI Research June 10, 2015 SKU: BMI5586503

Hungary Infrastructure Report Q3 2015

BMI View: Strong economic growth will be supportive of construction sector growth, with the energy andtransport sectors being the key growth drivers. However, BMI cautions that the recent EU probe into cartelallegations in road construction could see some of the vital EU funding withdrawn, which places significantdownside to our forecast.

Hungary's construction sector is booming off the back of strong public investment and EU funding andBMI expects the construction sector to grow by 7.2% in 2015 and a further 1.6% in 2016. Strong growth inHungary's construction sector is not expected to be long term as we expect a rising fiscal deficit tonecessitate a draw back in public investment. It is also likely that there will be a slowdown in spending in2015, as the government enforces spending cuts. Between 2016 and 2024, we expect construction sectorreal growth to average 3% per year.

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Hungary Infrastructure Report Q3 2015

BMI Research
June 10, 2015

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