Article Tools

Romania: Construction Industry to Grow by 1.9 Percent

Published: September 12, 2013; 09:45 · (Vindobona)

The growth rate in the construction industry is even higher than economic growth in real terms.

Romania: Construction Industry to Grow by 1.9 Percent / Picture: © Vindobona.org

According to a report by Business Monitor International (BMI), the Romanian economy is estimated to have grown by 0.5 percent in real terms last year. In its most recent macroeconomic outlook, BMI forecasts growth to increase to 1.7 percent in 2013. The construction sector, on the other hand, is expected to show an even higher growth rate powered by the strong performance of road and energy sectors. Moreover the outlook on non-residential construction is improving.

BMI estimates growth of 1.9 percent for the construction industry for this year after a 0.9 percent contraction last year. From 2014 to 2017, BMI expects the Romania construction market to expand at an annual growth rate of 3.2 percent and, as a long-term outlook, from 2018 to 2022, the growth rate should remain around 3.1 percent in real terms.

However, the risks, according to BMI, could negatively influence growth in Romania. The country is dependent on the Eurozone market. However, there are structural barriers, which are weighing heavy on growth. Until the economic and financial crisis in the Eurozone has faded away, there are few chances of the construction market to improve conditions in the labor market, i. e. in regard to job security and wages.

Fast News Search