Slovakia Construction Industry Report 2023: Output was Expected to Grow by 6.1% in Real Terms in 2023, but the Short-term Outlook is Not as Positive - Forecasts to 2027 - ResearchAndMarkets.com
The construction industry in Slovakia is expected to grow by 6.1% in real terms in 2023, but the short-term outlook is fairly gloomy.
The "Slovakia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Slovakia is expected to grow by 6.1% in real terms in 2023, but the short-term outlook is fairly gloomy.
According to the Statistical Office of the Slovak Republic (SOS), the Slovakian construction industry's value add grew by 23.8% year on year (YoY) in Q1 2023, preceded by Y-o-Y growth of 1.1% in Q4 and 6.4% in Q3 2022, but the pace of growth will slow sharply in the coming quarters, and the analyst expects the Slovakia's construction industry to record an annual decline of 1.9% in 2024.
The weak outlook reflects challenging economic headwinds and also a sharp decline recorded in the total floor area permits for the construction of buildings. According to Eurostat, the floor area permits for the construction of new buildings in the country declined by 44.6% YoY in Q1 2023, preceded by an annual decline of 8% in 2022.
Moreover, the construction producer cost index for new residential buildings rose by 14.9% in H1 2023, preceded by an increase of 21.7% in 2022 and 5.1% in 2021, according to Eurostat. In addition, the persistence of high construction material and component prices might weigh upon the construction activities. According to the SOS, the average index measuring construction material and component prices jumped by 7% in the first half of 2023, preceded by an increase of 22.5% in 2022.
The Slovakian construction industry is expected to pick up again from 2025, posting an average annual growth rate of 3.8% from 2025 to 2027, supported by investments in renewable energy projects and transport infrastructure, bolstered by European Union (EU) recovery funds. In July 2023, the European Commission approved the country's modified Recovery and Resilience Facility (RRF) worth EUR6.4 billion ($6.5 billion) in grants, compared with previous plan of EUR6 billion ($6.1 billion) grant.
In February 2023, the EU endorsed Slovakia's request for EUR709 million ($724 million) in grants, following EUR399 million ($407.5 million) disbursed in July 2022 and EUR823 million ($840.4 million) in October 2021. According to the modified plan, the total amount allocated to the renewable energy sector increased from 42% in June 2021 to 46% in July 2023. The modified plan also includes modernization of electricity grids, construction of a data centre and investment in digital transition.
Scope
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Slovakia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the analyst's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1. Construction Outlook
2. Construction Industry: At-a-Glance
3. Latest News and Developments
4. Project Analytics
5. Construction Market Data
6. Risk Profile
For more information about this report visit https://www.researchandmarkets.com/r/p2rnqp.
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