Construction Sector Could Contract 15% This Year

Construction

Hungary's construction sector could contract 10-15% this year, based on feedback from industry insiders, the head of the professional association Évosz said, writes portfolio.hu.

László Koji said an accurate forecast for the decline in output is impossible amid the uncertainty.

He acknowledged positive factors, such as the possible arrival of European Union funding this year, after a one-and-a-half-year delay, as well as government decisions to continue home subsidies for families and village residents and cheap credit for families having children.

Despite that, double-digit lending rates have caused Hungarians to postpone renovation and home purchase plans, he warned.

Without government intervention, such as interest rate subsidies for home loans or a 5% rate cap, home builds and renovations could be halved this year and next from the estimated 22,000 and 250,000, respectively, in 2022, Koji said.

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