Construction growth forecast for Bulgaria

21 September 2011

Bulgaria's construction sector is poised for growth between 2012 and 2015, following a slow recovery from the difficult market conditions that it is currently experiencing.

According to research company PMR, the country's construction sector declines will begin to slow by the end of this year.

The first half of 2011 was marked by an average decline of more than 10%, and construction output also fell heavily in July, registering a 13.3% decline according to figures from Eurostat.

But PMR analysts said growth later this year would mean that the average decline for Bulgaria's construction market for the whole of 2011 would not be as severe - in the region of 3%.

And moderate construction market recovery is forecast for 2012 to 2015, driven by the civil engineering infrastructure sector and large-scale infrastructure projects related to EU funds.

From 2012, the market will be supported by the launch of Bulgaria's regional development, transport and environment programmes, which will provide €4 billion by 2013 for different infrastructural projects.

Energy growth

PMR said another encouraging sign was the expected investment in Bulgaria's energy sector in the coming years - interest which it said should "firmly establish the energy sector as one of the most dominant in the economy and as one of the driving forces in the construction industry".

In residential construction, too, the slow recovery from the crisis is set to continue in 2012. The balance between supply and demand is gradually recovering, and the long-term outlook for the sector is positive, according to PMR.

PMR's forecasts echo the message from Svetoslav Glossov, president of the Bulgarian Construction Chamber, who spoke at the FIEC (the European Construction Industry Federation) annual congress in June.

Mr Glossov told delegates that he was optimistic about the future in Bulgaria, especially in terms of roads as the country has five pan-European corridors. He said that in 2010, out of the hardest-hit sectors of the EU, only construction remained in a positive position.