Pandemic plays minor role in construction sector contraction


Dwindling European Union funding at the end of the blocʼs seven-year budget period has impacted Hungaryʼs construction sector more than the pandemic, the chairman of the National Construction Companies Association (ÉVOSZ) said on public television on Wednesday, according to a report by state news wire MTI.

László Koji told news channel M1 that EU funding from the 2014-2020 budget has been used up and industry insiders are waiting for the start of the 2021-2027 funding period.

He said the pandemic has caused construction orders to fall 3-4%, a relatively small share of the total 16pc drop in order stock.

Koji said municipal council orders have been halved and attributed the decline to last yearʼs local government elections as well as to the pandemic.

Industry players are pinning their hopes on government stimulus and expect tenders to be called in September or October, he added.

Construction sector output fell 5.6% year-on-year in January-May, the latest data from the Central Statistical Office (KSH) show. In May alone, output plunged 20.1% year-on-year.


Job ads in hospitality, tourism sector grow drastically  Analysis

Job ads in hospitality, tourism sector grow drastically 

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.