Industry Assoc Augurs Fall in Construction Output

Analysis

Output of Hungary's construction sector is set to fall in 2024, judging from order stock and outlooks, industry association Évosz said on Wednesday, according to a report by state news wire MTI.

Évosz pointed to lower retail demand as households put off projects while interest rates remain high, and a decline in public sector orders as the state postpones some investments. High base material prices also weigh on demand, the association said.

The association said close to 15,000 of the 20,000 homes under construction at present could be completed by year-end, while some 180,000 homes could be renovated, a "significant decline".

Headcount in the sector is expected to fall by 10,000-15,000, and around 20,000 construction workers will retire.

Évosz said market oversight needed to be stepped up as local players faced increased competition from competitors based outside of the European Union.

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