New Market Research Report: Hungary Infrastructure Report Q1 2015

Fidesz party emerging victorious in both general and municipal elections in 2014 have 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. Adding to the positive growth projections is BMI's v iew that Hungary will avoid the EU funding cuts. However, debt reduction measures are likely to lead to further austerity measures, which will negatively impact infrastructure spending.

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 further 7.7% in 2015. Exceptionally strong growth in Hungary's construction sector is not expected to be a 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 2023, we expect construction sector real growth to average 3.5% per year.

Full Report Details at
- http://www.fastmr.com/prod/924169_hungary_infrastructure_report_q1_2015.aspx?afid=301

Key Trends And Developments

* Hungary will narrowly avoid being placed back under the European Commission's Excessive Deficit Procedure (EDP) in 2015. Under the EDP, the EU can suspend structural funding to countries which post fiscal deficits in excess of 3.0% of GDP. We believe that the threat of funding cuts will be sufficient motivation for the government to pursue an austerity programme to keep the country's deficit within EU limits in 2015. Indeed, Finance Minister Mihaly Varga has recently announced a target for government spending of 45% of GDP, down from 50% in 2014. While we see this target as unrealistic, we nevertheless expect the 2015 budget to contain significant spending cuts.
* Residential and non-residential and civil engineering projects have been the primary drivers of the construction sector rebound in 2014, with road and railway projects in...

The Hungary Infrastructure Report features Business Monitor International (BMI)'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

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 http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Vietnam Infrastructure Report Q1 2015
- Qatar Infrastructure Report Q1 2015
- South Africa Infrastructure Report Q1 2015
- Cote d'Ivoire Infrastructure Report Q1 2015
- Germany Infrastructure Report Q1 2015