The construction industry in Bulgaria is projected to grow from 2016 to 2020 and recover from the decline of the last five years, according to a report by Timetric.

Titled ‘Construction in Bulgaria – Key Trends and Opportunities to 2020‘, the report outlines the significance of investments in road construction and transport infrastructure and how the growth in the construction sector will be driven by road, rail and transport infrastructure investments.

"The infrastructure market is a leader in the country’s construction industry and is expected to account for 48.7% of the total industry by 2020, led by road construction."

Besieged by problems including high-unemployment rates, a weak economy, a large budget deficit, poor business confidence and consumer demand, Bulgaria’s construction industry has declined by 11.4% between 2010 and 2015.

Bulgarian authorities have initiated the development, maintenance and repair of roads and related infrastructure under its road infrastructure development strategy 2022. The country intends to develop a world-class road network to link it to the Trans-European transport system.

Plans including the Transport and Transport Infrastructure 2014-2020 programme have been announced to focus on the country’s road and infrastructure development and improvement. Major road construction projects are also expected to be completed by 2020, giving a boost to the Bulgarian construction sector.

The infrastructure market is a leader in the country’s construction industry and is expected to account for 48.7% of the total industry by 2020, led by road construction. Housing and energy are also expected to boost the construction industry.

According to the Timetric report, the construction industry will also benefit from growing consumer and investor confidence and an improving economy, both domestic and global. Although a promising outlook is predicted for the sector, there are certain factors such as limited funding, fiscal constraints and high dependence on European Union (EU) funds for infrastructure projects that may pose a threat to the recovery of Bulgaria’s construction industry.