Bulgaria’s construction sector to grow 5%

Bulgaria’s construction sector is tipped to grow +5% in 2013, according to market research firm PMR.

Despite the risks associated with the relatively strong links between the Greek and Bulgarian economies, in particular in the financial sphere, the Bulgarian economy remained quite resilient in 2012, PMR found. As a result, the risk of recession is low and GDP growth should accelerate in 2013.

According to PMR, the construction sector is expected to grow more rapidly in the coming years, driven by an increase in EU-financed public projects as well as by a revival of investment activity in the private sector. Currently, building construction is more than 60% lower than in 2008 and even lower than in 2005.

Civil engineering will lead the way in construction market improvements, boosted by road and railway infrastructure projects, as well as environmental projects.

The residential construction market is also expected to stabilise after more than five years of consecutive decline.

And PMR said the situation in the non-residential construction market has improved slightly in 2012, compared to 2011, mostly in the construction of industrial buildings and increased demand for retail space.