Upbeat forecast for construction in CEE countries

Information provider PMR is optimistic on growth prospects for construction output in Bulgaria, Romania, Hungary, the Czech Republic and Slovakia between 2011 and 2016, but forecasts no increase in Poland’s output.

Romania is forecast to report the highest increase for the five-year period, with construction output forecast to rise 53% by 2016, while Bulgaria is expected to see a 41% jump in output compared to 2011.

Romania and Bulgaria have just begun to benefit from a large number of public investments co-financed by EU funds

Meanwhile, construction output in the Czech Republic is also forecast to rise 10% by 2016, and output in Slovakia and Hungary is expected to increase 6% and 2.5% respectively over the period.

Of the six Central and Eastern European countries featured in PMR’s forecast, only Poland is expected to see construction output remain stable or drop slightly between 2011 and 2016 – the forecast is for a 0.01% drop over the period.

“Despite a robust recovery, Poland’s construction output in 2016 will be at best slightly lower than was seen in 2011,” PMR said.

“Nevertheless, even in this country recovery and growth are expected in 2014 due to, among other reasons, huge increases in public investment resulting from a renewed flow of EU funds. Hence in 2016, Poland will be the only country beside Romania, that will have construction output higher than was seen prior to the 2008 to 2009 economic crisis,” PMR added.