Dublin, March 06, 2024 (GLOBE NEWSWIRE) -- The "Slovenia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
Following an expansion of 4.4% in 2022, Slovenia's construction industry was forecast to grow by 15.1% in 2023. This upward trend is attributed to a better than expected performance in the second quarter of 2023, with the industry's value add having expanded by 18.4% year on year (YoY) in Q3 2023, preceded by YoY growths of 21% in Q2 and 15.1% in Q1 2023. Cumulatively, the industry registered an annual growth of 18.3% in real terms in the first nine months of 2023.
However, the construction industry is expected to record a contraction of 7.9% in 2024, owing to weaker consumer confidence, higher construction costs, coupled with high inflation and rising interest rates. In October 2023, the Bank of Slovenia (Banka Slovenije) increased the interest rate from 3.67% in October 2023 to 3.86% in November 2023. Although, according to the International Monetary Fund (IMF), inflation rate is expected to come down to 4.2% in 2024 from 7.4% in 2023; it will still remain above the central bank's target of 2%.
The inflation rate will gradually decline to 2% in 2028, according to IMF. Further, according to Central bank's data, Slovenia is expected to record an interest rate of 4.3%, which is staying constant with 2023, reflecting a constant high percentage of interest rate in the country. The downward trend in 2024 is also attributed to a decline in the total number of building permits issued by 6.3% YoY in first nine months of 2023, according to the Statistical Office of the Republic of Slovenia (SURS). As a result, it will have the potential to lower construction activities in the country in the initial part of the forecast period.
The Slovenian construction industry is expected to rebound in 2025 and register an annual average rate of 3.2% during 2025-2027, supported by investments in the educational sector, transport, renewable energy, automotive, tourism and retail trade sectors. The Slovenian government plans to achieve its target of 27% renewable energy (RE) in the energy mix by 2030 using hydropower, solar energy and wood biomass.
Thus, the government is prioritizing the acceleration of the RE deployment in the country. The government is planning to speed up the development of EUR11 billion ($11.2 billion) the project- JEK2, for the second reactor of the Krsko nuclear power plant. Furthermore, European Investment Bank (EIB) approved an EUR250 million ($255.3 million) loan to state-owned company 2TDK for Divaca - Koper second track project, to finance the doubling of the line connecting Divaca to the port of Koper, in Slovenia. With the construction works scheduled to reach the completion at the end of 2023, the total investment for the 27-kilometre lines estimated at EUR1.10 billion ($1.12 billion) where the EIB investment will be covering 21% of the total funds.
The report provides detailed market analysis, information and insights into the Slovenian construction industry, including:
- The Slovenian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Slovenian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Slovenia, 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
For more information about this report visit https://www.researchandmarkets.com/r/b37gx5
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