(MENAFNEditorial)
Strong economic growth will be supportive of construction sector growth with the energy and transport sectors being the key growth drivers. However BMI cautions that the recent EU probe into cartel allegations in road construction could see some of the vital EU funding withdrawn which places significant downside to our forecast.
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 7.2% in 2015 and a further 1.6% in 2016. 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% per year.
Full Report Details at
-
Key Trends And Developments
* The European Commission has suspended EUR451mn (approximately 0.5% of GDP) in development funding after finding irregularities in the procedure for project selection during the 2007-2013 budget cycle. EU structural funding has been and will continue to be a key driver of investment and economic growth in Hungary.
* The Hungarian government has halted the construction of the M4 motorway's section connecting Abony and Fegyvernek over suspected cartel activity. In April 2015 The European commission had raised issues pertaining to alleged cartel activity. The government is now launching a one-month investigation into the matter and has ordered National Infrastructure Development Corporation (NIF) to stop construction immediately. The internal supervision department at the Prime Minister's Office will inspect the case and find out how the NIF carried out its public procurement application for the project.
* Hungary's budget deficit came in at 2.6% of GDP in 2014 a slight deterioration from 2013 but well below expectations of 2.9%. The better...
The Hungary Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects including transportation and logistics by land sea and air; power plants and utilities and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Hungary Infrastructure Report provides industry professionals and strategists sector analysts investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Hungarian infrastructure and construction industry.
Key Benefits
* Benchmark BMI's independent infrastructure industry forecasts for Hungary to test other views - a key input for successful budgetary and planning in the Hungarian infrastructure market.
* Target business opportunities and risks in the Hungarian infrastructure sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Hungary.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts views and trend analysis covering infrastructure and construction regulatory changes major investments and projects and significant national and multinational company developments. These are broken down into construction (social commercial and residential) transport (roads railways ports airports etc) and energy & utilities (powerplants pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths weaknesses opportunities and threats within the infrastructure and construction sectors and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators supported by explicit assumptions plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads railways airports and ports and the energy and utilities sub-sectors of power plants and transmission grids oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport utilities commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points. These provide indices of highest to lowest appeal to investors with each position explained.
Market Overview
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry including the key financial figures from some of the largest players in the sector.
Company Profiles*
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts we provide quick and easy access to the best competitive intelligence available. Our unbiased expert staff is always available to help you find the right research to fit your requirements and your budget.
For more information about these or related research reports please visit our website at or call us at 1.800.844.8156 (1.413.485.7001 Int'l)
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.