Business Monitor International

Hungary Infrastructure Report

Published 02 September 2014

  • 73 pages
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  • Includes 3 free updated quarterly reports
Hungary Infrastructure Report

BMI View : The election victory of Fidesz party in April provides continuity in Hungarian policy making, which will support the economic growth. Macroeconomic growth coupled with strong public investment and supported by the E U funding will result in a short-term boost in infrastructure development. As a result BMI forecasts the construction industry will grow 16.3% in 2014 and another 8.1% in 2015. However, mounting fiscal pressures add a downside risk to BMI 's outlook.

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 16.3% in 2014 and further 8.1% in 2015. Exceptionally strong growth in Hungary's construction sector is not expected to continue beyond 2015 as we expect a rising fiscal deficit to necessitate a draw back in public investment. Between 2016 and 2023, we expect construction sector real growth to average 2.4% per year.

Key Trends And Developments

  • We expect to see broad policy continuity from the Hungarian government, that is to say the country's policy making will remain erratic, following an overwhelming victory for the governing centre-right Fidesz party in the April 6 general election. We do not expect to see any shift in the government's policy stance in the months or years ahead, with Prime Minister Viktor Orban's programme of placing punitive taxes on publicly unpopular industries, such as banking, utilities and telecommunications, continuing to garner widespread support. Increasing fiscal deficit and the EU threatening to withhold some of the key structural funds place downside on the Hungarian outlook.

  • Growth in the energy sector will primarily come from the oil and gas subsector and consequently the energy sector will expand at an average rate of 5% per annum over 2013-2023. The growth will be particularly pronounced in 2014, as a result of the new Hungary-Slovakia gas pipeline coming online. Increased government...

Table of Contents

BMI Industry View
Infrastructure SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Table: Construction And Infrastructure Industry Data (Hungary 2012-2017)
Table: Construction And Infrastructure Industry Data (Hungary 2018-2023)
Transport Infrastructure - Outlook And Overview
Table: Transport Infrastructure Industry Data (Hungary 2012-2017)
Table: Transport Infrastructure Industry Data (Hungary 2018-2023)
Table: Major Projects - Transport
Energy And Utilities Infrastructure - Outlook And Overview
Table: Energy And Utilities Infrastructure Data (Hungary 2012-2017)
Table: Energy And Utilities Infrastructure Data (Hungary 2018-2023)
Table: Major Projects - Energy And Utilities
Residential/NonResidential Building - Outlook And Overview
Table: Residential and Non-Residential Building Industry Data (Hungary 2012-2017)
Table: Residential and Non-Residential Building Industry Data (Hungary 2018-2023)
Table: Major Projects - Residential, Non-Residential Construction And Social Infrastructure
Industry Risk Reward Ratings
Hungary - Infrastructure Risk/Reward Ratings
Central And Eastern Europe - Infrastructure Risk/Reward Ratings
Limited Access To Funding
Table: Central And Eastern Europe Risk Reward Ratings
Market Overview
Competitive Landscape
Table: EQS Data
Company Profile
Strabag Hungary
K-SZ Building & Construction
Global Industry Overview
Middle East/North Africa Presents Strongest Investment Profile
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Rating Methodology
Sector-Specific Methodology
Table: Infrastructure Risk/Reward Rating Indicators
Table: Weighting Of Indicators

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

  • Benchmark BMI's independent infrastructure industry forecasts for Hungary to test other views - a key input for successful budgetary and planning in the Hungarian infrastructure market.
  • Target business opportunities and risks in the Hungarian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Hungary.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.

These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).

Industry Trends

Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:

Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.

Building Materials Overview

The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.

Business Environment Rankings

BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry & Economic Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).

Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc