Expansion of the Hungarian Construction Sector

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CEIC Macro Watch #32 - May 30, 2014 - In March 2014 the Hungarian Construction Volume Index rose by 34.2% on an annual basis, driven mainly by the increase in the construction of buildings and civil engineering projects. In value terms, construction output reached HUF 158.8 billion. Alongside the massive growth in output, the seasonally-adjusted Construction Confidence Indicator, after falling in February, trended up to -4.5% points in April this year. While still in the negative region, this was a record high since 2002, before the drop to -7.0% points in May 2014. The surge in the construction sector since the beginning of the year can mostly be attributed to public sector works such as railway and road construction. However, growth has also been driven by the 0% interest rate loans offered by the Hungarian National Bank to credit institutions which extend financing to small businesses at borrowing rates of no more than 2.5%. The so-called Funding-for-Growth Scheme running from June 2013 until December 2014 aims to provide credits totalling HUF 2,750 billion. By Petar Chavdarov Google+ Author Profile - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog

3rd June 2014 Expansion of the Hungarian Construction Sector

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