Greece Infrastructure Report Q1 2008

The Hellenic Republic of Greece has witnessed tremendous development in its existing infrastructure since preparations began for the 2004 Athens Olympic Games. BMI's newly released Greece Infrastructure Report Q407 forecasts an average construction growth rate of 5.8% over the 2008-2012 period. The construction industry contributed about 6.85% to the Greek gross domestic product (GDP) in 2006.

The European Union (EU) has substantially funded and aided the development of Greek infrastructure.

Major projects currently under way in the country span roadways, railways, airports and hotels, as well as telecommunications and energy segments. The nation's endeavour to create diversified sources of energy has paid dividends, as agreements have been signed with Russia, Turkey, Italy and other nations for the construction of oil and gas pipelines. Major players in the Greek infrastructure industry include locals Elliniki Technodomiki-Aktor-TEB Group, J&P-AVAX, Terna, Mytilineos, Aegek and Athena.

However, growth in the Greek construction industry has been sluggish. It also suffers from certain drawbacks that can have an adverse effect on its long-term growth potential. Since the majority of the Greek projects are financed by the EU, any reduction in fund allocation can have a significant impact on the industry. Earlier, Greece had to contend with only a few countries for EU funds. However, the entry of eastern European countries into the EU now means Greece is one of several 'poor' countries seeking EU funds. Moreover, the nation is plagued by widespread delays in project completion and inadequate private investment. Further, bureaucracy hinders the pace of developmental work.

That notwithstanding, BMI forecasts that Greece's plans to promote itself as a gateway for Chinese and Russian goods and energy to the Balkan Peninsula and the Black Sea region, among other proposed infrastructural developments, will lead its construction industry to reach a value of US$39.96bn in 2012.The Hellenic Republic of Greece has witnessed tremendous development in its existing infrastructure since preparations began for the 2004 Athens Olympic Games. BMI's newly released Greece Infrastructure Report Q407 forecasts an average construction growth rate of 5.8% over the 2008-2012 period. The construction industry contributed about 6.85% to the Greek gross domestic product (GDP) in 2006.

The European Union (EU) has substantially funded and aided the development of Greek infrastructure.

Major projects currently under way in the country span roadways, railways, airports and hotels, as well as telecommunications and energy segments. The nation's endeavour to create diversified sources of energy has paid dividends, as agreements have been signed with Russia, Turkey, Italy and other nations for the construction of oil and gas pipelines. Major players in the Greek infrastructure industry include locals Elliniki Technodomiki-Aktor-TEB Group, J&P-AVAX, Terna, Mytilineos, Aegek and Athena.

However, growth in the Greek construction industry has been sluggish. It also suffers from certain drawbacks that can have an adverse effect on its long-term growth potential. Since the majority of the Greek projects are financed by the EU, any reduction in fund allocation can have a significant impact on the industry. Earlier, Greece had to contend with only a few countries for EU funds. However, the entry of eastern European countries into the EU now means Greece is one of several 'poor' countries seeking EU funds. Moreover, the nation is plagued by widespread delays in project completion and inadequate private investment. Further, bureaucracy hinders the pace of developmental work.

That notwithstanding, BMI forecasts that Greece's plans to promote itself as a gateway for Chinese and Russian goods and energy to the Balkan Peninsula and the Black Sea region, among other proposed infrastructural developments, will lead its construction industry to reach a value of US$39.96bn in 2012.