Southeast Europe Emerging As Public Works Hot Spot
In European construction markets during 2002, "total construction output reached zero growth overall and decreased by 0.2%" in real terms, said Anna Gáspár, a top Hungarian construction official. She attributed this to "increasing uncertainty following the Iraq conflict, budget reforms in many European countries, growing unemployment and a pessimistic business outlook." But she claimed that public works fared somewhat better, increasing by 1.3%. "For the years 2004-2005, a significant growth is forecast both in GDP and construction output," said Gáspár.
Pekka Pajakkala, of VTT Building Technology, Construction and Management Research in Finland, predicted that infrastructure markets in central and eastern Europe would grow 9% and 13%, respectively, in 2004 and 2005 to improve transportation infrastructure to European Union standards.