Construction business association EVOSZ expects Hungary's building sector to contract by about 12% this year, deputy chairman László Koji told MTI.
The sector will contract in spite of last year's low base, Koji said. Output of the sector is currently down about 40% compared to 2006, he added.
Construction sector output fell 12.3% in January-July from the same period a year earlier, fresh data published by the Central Statistical Office (KSH) on Thursday show. Output was down 4.6% in July from the same month a year earlier.
Even though the sector's new orders and total order stock may signal growth, one has to look at how many of these investments are actually built, Koji said. Contracts worth about HUF 1,200 billion were not or only partly completed in the past four years, largely because of the recession, and contracts worth HUF 3,000 billion have been put on hold over the last three years, he added.
The outlook for 2011 could change depending on the level of state support for home construction and energy-saving improvements, he said. (MTI – Econews)