Hungary’s economic prospects have improved since the fall of 2018, according to Eastern European Construction Forecast Association (EECFA). There is less good news for the rest of the region, however; apart from Russia, the outlook for other countries has worsened.
Overall, the research conducted by the EECFA shows that GDP growth in Eastern Europe is more promising than in other parts of the continent, as Hungary and Serbia can expect a “more than 3.5%” GDP increase annually until 2020. However, Turkey is lagging behind with its growth remaining under 1.5%.
Looking at gross fixed capital formation (GFCF), the association once again points to Hungary and Serbia as areas of significant growth, together with Croatia, Slovenia and Bulgaria. Romania is in a less advantageous position, the data shows, as its GFCF rise has fallen to 0%. The only EECFA country where GFCF is likely to decrease is Turkey, the EECFA predicts.
Moreover, the EECFA ranked Hungary as the leader in GFCF prospects “with a nearly 10% annual growth rate”, followed by Slovenia and Serbia, both at an expected 8% rise. Hungary’s optimistic outlook is further strengthened by having the highest predicted growth of construction investment (15%) in the region, the report finds.