We expect Bulgaria's construction industry to grow 3.4% in 2018, with an average annual real growth of 3.0% over2018-2027. Infrastructure will be the largest component. The development of the country's road and railway network with thesupport of EU funds will continue. The tourism sector will remain a substantial growth driver, while limited demand in non-residentialbuilding will provide a drag. The demand for housing units declined over the last few years due to the weak economy and tightcredit conditions. However, the residential construction market is on a path of recovery, along with general improvement of theeconomy, evidenced by the increase in building permits and residential property prices.