Bulgaria’s construction industry growth decelerated to 3.7% in 2018, after growing at 4.4% in 2017. The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 4.40% between 2018 and 2023, according to GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Construction in Bulgaria – Key Trends and Opportunities to 2023’ reveals that the industry’s output value in real terms is expected to increase from a value of US$8.7bn in 2018 to US$10.7bn in 2023, measured at constant 2017 US dollar exchange rates.
Danny Richards, Lead Economist at GlobalData, comments: “Bulgaria’s construction industry is expected to be driven by the government’s efforts to develop the country’s transport infrastructure and residential market. Financial assistance from the EU will also support the industry’s growth over the forecast period; Bulgaria will receive BGN4.5bn, equivalent to US$2.7bn, from the EU’s 2019 budget, of which BGN1.5bn, equal to US$903.9m, will be allotted towards infrastructure projects in the country.”
Infrastructure construction was the largest market in the Bulgarian construction industry during the review period, accounting for 36.1% of its total value in 2018. The market is expected to remain the dominant sector over the forecast period, though it will lose some share with infrastructure construction accounting for 33.9% of the industry’s total value in 2023. Growth in the sector will be supported by the government’s investment in rail and road transport infrastructure development projects. In the 2019 budget, the government announced plans to invest BGN550.0m (US$331.4m) on infrastructure development.
Richards concludes: “The total construction project pipeline in Bulgaria – as tracked by GlobalData, and including all mega projects with a value above US$25m – stands at BGN57.2bn, equivalent to US$34.4bn. The pipeline, which includes all projects from pre-planning to execution, is relatively balanced, with 50.1% of the pipeline value being in projects in the pre-planning and planning stages as of April 2019.”