Boston, MA -- (SBWIRE) -- 01/01/2014 -- All-round optimism in Hungary - particularly on the macroeconomic front and from the construction sector - has led us to revise up our outlook for the Hungarian construction industry. We have changed our 2013 forecast from stagnant growth (which we expected last quarter) to real growth of 3.5% year-on-year (y-o-y), which will be followed by 2.2% y-o-y in 2014. Although the industry will post annual average growth of 2.0% over the forecast period to 2022, we see little likelihood of the industry value recovering to peak levels reached in 2005. Continued weakness in the residential and non-residential construction sub-segment is to be blamed for this lacklustre recovery.

View Full Report Details and Table of Contents

According to estimates from the Hungarian statistical office, the Hungarian construction sector posted 6.2% y-o-y growth during the first seven months of 2013. Broader macroeconomic indicators also point towards the ongoing recovery in the economy. Y-o-y real GDP growth turned positive in Q213, expanding by 0.5%, the first such y-o-y expansion reading since Q411, and has prompted us to revise up our forecast for real GDP growth in 2013, 2014 and 2015 to 0.3%, 1.7% and 2.1% respectively from -0.1%, 1.1% and 1.9% previously.

Over the 2013-2017 period, we expect the infrastructure segment to increase its contribution to the construction industry value from 44.4% to 47.0% by 2017. Meanwhile, growth in the residential and non-residential sector will average 0.6% y-o-y between 2013 and 2017, as investment in non-residential buildings picks up.

Key areas of growth in the sector are:

- Commitment To Transport Spending: The biggest growth opportunity for the country's transport infrastructure is the support given by the EU to drive the modernisation of Hungary's road and rail links and improve freight transport throughout the country. We expect growth in the railways sub-sector to outpace growth in the overall transport segment. In October 2013, MAV, the Hungarian State Railways, revealed its plans to modernise railway network around Lake Balaton in the Transdanubian region. The project, which will involve the rebuilding of the 29km line between Lepseny and Zamardi, will also be financed by the EU. Meanwhile, the modernisation of the 56km line between Zamardi and Balatonszentgyorgy has received clearance and will be funded from the 2014-2020 EU budget.

About Fast Market Research
Fast Market Research is an online aggregator and 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 will 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 http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Construction research reports at Fast Market Research

You may also be interested in these related reports:

- Brazil Infrastructure Report Q1 2014
- China Infrastructure Report Q1 2014
- Indonesia Infrastructure Report Q1 2014
- Cameroon Infrastructure Report Q1 2014
- Czech Republic Infrastructure Report Q1 2014
- Vietnam Infrastructure Report Q1 2014
- Nigeria Infrastructure Report Q1 2014
- Cote d'Ivoire Infrastructure Report Q1 2014
- Turkey Infrastructure Report Q1 2014
- Australia Infrastructure Report Q1 2014