Romania’s construction industry remains major economic growth driver

Romania’s construction industry remains major economic growth driver
/ bne IntelliNews
By bne IntelliNews November 20, 2023

Romania’s construction works index accelerated to an annual growth rate of 13.8% in Q3, from 11.0% y/y in Q2, driven by the public works segment (+32% y/y) and certain improvements in the area of non-residential buildings (+4.9% y/y).

The fiscal constraints will probably dent the overall construction industry performance in Q4, although the multiannual EU budget and the Resilience Facility should keep some worksites busy despite the government’s financial constraints.

The residential building area posted a double-digit contraction (-11.2% y/y) for the second consecutive quarter, and is still bleeding.

The seasonally adjusted construction works index increased impressively by 5.7% y/y in Q3. 

Interestingly, the growth in both annual and quarterly terms was driven by new construction works, according to the breakdown on the type of works (not the specific destination of the project): +18.7% y/y and +9.1% q.q in Q3.

The construction works index in the 12-month period to September 2023 increased by 15.3% y/y, compared to the 12.9% y/y advance in 2022 and remains a major driver for the entire economy of the country. 

The state forecasting body CNP estimates the gross value added generated by the sector up 7.8% y/y in 2023, to further accelerate: at over 9% y/y in 2025-2026 as the projects under the Resilience Facility have to be commissioned. For 2024, only a small slowdown to 7% y/y is envisaged.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Content

ING: Romanian growth figures reinforce signs of resilience.

Retail sales in Romania slightly stronger in October

COP28: A week in, and fossil fuels and finance dominate

Data

BOFIT: Russian inflationary pressures on the rise

Russia’s strong growth, driven by heavy military spending, has created growing inflationary pressure as the economy starts to overheat, the Bank of Finland institute for Emerging Economies (BOFIT) says in its weekly update.

Putin's trust rating holds steady at 78.5% in latest poll

In the most recent poll conducted by the Russian Public Opinion Research Center (VTsIOM), President Vladimir Putin's trust rating remained steady at 78.5%.

Dragon Capital halves Ukraine’s 2024 GDP forecast to 4% in anticipation of another year of war

Ukraine’s leading investment bank Dragon Capital has cut its GDP forecast for Ukraine in 2024 in half to 4% y/y in anticipation of another year of war, The New Voice of Ukraine reported on December 7.

Czech industry increased by 1.9% y/y in October

Czech industrial production increased by 1.9% year on year and by 2.8% month on month in October. The October increase follows a 5% slump registered in September, which alarmed local analysts.

Turkey’s net reserves recover to minus $57bn

Since 2018, economy has carried risk of severe balance of payments crisis. For the removal of that risk, the central bank’s net in and off-balance sheet FX position should at least turn positive.

BOFIT: Russian inflationary pressures on the rise
19 hours ago
Putin's trust rating holds steady at 78.5% in latest poll
20 hours ago
Dragon Capital halves Ukraine’s 2024 GDP forecast to 4% in anticipation of another year of war
23 hours ago
Czech industry increased by 1.9% y/y in October
23 hours ago
Turkey’s net reserves recover to minus $57bn
1 day ago

Follow Us On

Most Read

  1. Putin's approval rating up to 85% in November, Russians happy with the country's direction
    5 days ago
  2. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  3. LONG READ: The boomerang effect: sanctions hurt Europe more than Russia
    7 days ago
  4. Former Kazakh leader Nazarbayev confesses to polygamy with Miss Kazakhstan 1999
    3 days ago
  5. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    12 days ago
  1. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  2. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    12 days ago
  3. Russia overtakes Germany to become fifth biggest economy in the world in GDP on a PPP basis
    4 months ago
  4. Armenia marks new era with French military purchases
    11 days ago
  5. Lavrov confirms Ukraine war peace deal reached last April, but then abandoned
    2 months ago

Reports

SELECT `n`.`nid` AS `id`, `n`.`title`, 'bne IntelliNews' AS authors, 'bne IntelliNews' AS bylines, `wc`.`field_website_callout_value` AS `summary`, `smc`.`field_social_media_callout_value` AS `social`, `pd`.`published_at` AS `date`, `p`.`field_publication__tid` AS `publication_id`, `fm`.`uri` AS `image`, `fspcaption`.`field_story_photo_caption_value` AS `image_credit`, `fspcredit`.`field_story_photo_credit_value` AS `image_author`, `ws`.`field_website_sections_tid` AS `section_id`, `fdfs`.`field_subject_tid` AS `subject_id`, `db`.`body_value` AS `body`, `fm2`.`uri` AS `pdf`, `et`.`field_enable_tracking_value` AS `tracking`, `ht`.`field_head_tags_value` AS `headTags`, `bt`.`field_body_tags_value` AS `bodyTags` FROM `node` AS `n` LEFT JOIN `field_data_field_website_callout` AS `wc` ON wc.entity_id = n.nid LEFT JOIN `field_data_field_social_media_callout` AS `smc` ON smc.entity_id = n.nid LEFT JOIN `publication_date` AS `pd` ON pd.nid = n.nid LEFT JOIN `field_data_field_publication_` AS `p` ON p.entity_id = n.nid LEFT JOIN `field_data_field_story_picture` AS `sp` ON sp.entity_id = n.nid LEFT JOIN `file_managed` AS `fm` ON fm.fid = sp.field_story_picture_fid LEFT JOIN `field_data_field_story_photo_caption` AS `fspcaption` ON fspcaption.entity_id = n.nid LEFT JOIN `field_data_field_story_photo_credit` AS `fspcredit` ON fspcredit.entity_id = n.nid LEFT JOIN `workflow_node` AS `wn` ON wn.nid = n.nid LEFT JOIN `field_data_field_website_sections` AS `ws` ON ws.entity_id = n.nid LEFT JOIN `field_data_field_subject` AS `fdfs` ON fdfs.entity_id = n.nid LEFT JOIN `field_data_body` AS `db` ON db.entity_id = n.nid LEFT JOIN `field_data_field_file` AS `ff` ON ff.entity_id = n.nid LEFT JOIN `file_managed` AS `fm2` ON fm2.fid = ff.field_file_fid LEFT JOIN `field_data_field_enable_tracking` AS `et` ON et.entity_id = n.nid LEFT JOIN `field_data_field_head_tags` AS `ht` ON ht.entity_id = n.nid LEFT JOIN `field_data_field_body_tags` AS `bt` ON bt.entity_id = n.nid WHERE (n.status = 1) AND (n.type = 'article') AND (n.nid = 302018) AND (wn.sid= 3) AND (p.field_publication__tid = '1019') LIMIT 1
Dismiss