The Serbian construction sector grows dramatically. According to the Budapest-based research institute Buildecon, the Serbian construction market will show double-digit growth rates this year. The civil engineering sector is expected to expand by 19%. Already in 2011, similar growth rates could be achieved. Commercial building was up by 5.0%. The main reason for the construction boom: Serbia intends to become susceptive to the EU.
So, for Austrian construction companies, Serbia becomes an interesting market. Recently Porr received a major loan provided by EBRD, which is dedicated to the construction of a sleeper factory in Svilajnac. Porr´s CEO Karl-Heinz Strauss explained that the project is a part of the Trans-European Networks.
Nevertheless, industry experts say that Serbia did not reach the level of 2008. What is more, the Serbian construction sector is one of those few industries which record growth rates. In 2012, the Serbian economy will record zero growth.
By contrast, in Austria, the austerity package causes the loss of 10,000 jobs in the construction industry. Until the end of 2011, the number of unemployed persons in the construction industry was declining. Now, a trend reversal is expected. Due to different cuts in the public sector, revenues generated by the construction industry are anticipated to be down by € 500m at least. A decline of up to € 1.0bn is feared. Besides that, savings at Austrian railways reach € 917m.
