Boston, MA -- (SBWIRE) -- 04/30/2014 -- The Croatian construction industry registered a compound annual growth rate (CAGR) of -9.64% during the review period (2009-2013). This was driven by a contraction in institutional and industrial construction, primarily due to a reduction in investor confidence following the European debt crisis. The industry is expected to improve slowly over the forecast period (2014-2018), supported by a general recovery in the economy and business confidence. The industry is anticipated to record a forecast-period CAGR of 3.41%.

Report Highlights

- The Croatian construction industry remained weak following the global and European financial crises. In real gross value-added terms, the industry in 2013 was 57.0% its size in 2008. Despite this, the rate of decline has slowed and, with some stabilization in the area covered by building permits in 2013, the construction industry appears set for a period of recovery.
- A series of infrastructure projects will be launched to improve bridges, ports, roads, highways, airports, railways and power supplies. The Croatian government plans to invest HRK2.5 billion (US$436.5 million) in the construction and refurbishment of roads, HRK2.8 billion (US$488.9 million) for railways, HRK1.1 billion (US$192.1 million) for sea ports, HRK3.8 billion (US$663.4 million) for energy, and HRK127.0 million (US$22.2 million) for the combined heat and power (CHP) plant Sisak - Block C project.
- According to Croatia's Bureau of statistics, travel and tourism accounted for 15.0% of the country's GDP in 2012. With an aim to increase the sector's contribution, the government is focusing on the construction of new hotels and the expansion of existing ones. Overall, 12 large hotel projects, with a total room capacity of 2,900, are currently under construction. One such project is Split by Valamar Hotel Group, on which construction is expected to start by mid-2014. In 2013, the government also announced plans to invest HRK2.9 billion (US$506.0 million) in enhancing health tourism and eco-tourism on Bra?, an Adriatic island.
- In 2012, the industrial sector accounted for 25.0% of the country's GDP. Food, automotives, chemicals and pharmaceuticals are the sector's main segments, collectively employing 100,000 people. Stringent labor market regulations restricted the sector's competitiveness during the review period, due to the country's centralized system for the negotiation of wage agreements. High labor costs and low productivity are expected to restrict the volume of investments further.

View Full Report Details and Table of Contents

Companies Mentioned in this Report: Viadukt d.d., Hidroelektra Niskogradnja d.d., INGRA d.d., Strabag d.o.o., Osijek-Koteks d.d.

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Construction research reports at Fast Market Research

You may also be interested in these related reports:

- Construction in France - Key Trends and Opportunities to 2018
- Construction in the Netherlands - Key Trends and Opportunities to 2018
- Construction in Bahrain - Key Trends and Opportunities to 2018
- Construction in Myanmar - Key Trends and Opportunities to 2018
- Construction in Italy - Key Trends and Opportunities to 2018
- Construction in Japan - Key Trends and Opportunities to 2018
- Construction in the UK - Key Trends and Opportunities to 2018
- Construction in Spain - Key Trends and Opportunities to 2018
- Construction in Peru - Key Trends and Opportunities to 2018
- Construction in Russia - Key Trends and Opportunities to 2017