“Statistics confirm the consolidation of the positive climate in this capital- and labor-intensive sector (an evolution above the potential rate for the 11th consecutive month in June), in a context characterized by implementing an unprecedented lax mix of economic policies,” stated Andrei Radulescu, macroeconomic analysis director with Banca Transilvania.
The 19% increase in construction volume in the first half of 2020 comes after a sustained growth, of 23%, in the same period in 2019.
“We reiterate the fact that the construction sector will be one of the most dynamic of the post-pandemic economic cycle, a scenario backed by the perspective of persistent low real financing costs on the medium term and by the growth potential at the level of the critical infrastructure, also backed by the projects recently launched by the European Union,“ Banca Transilvania economists also said.
In terms of structure elements, capital repairs surged 49% on the year in the first half of 2020, current repairs grew 49% and new constructions grew 7%. Infrastructure works increased by 29.6%, residential buildings by 18.5% and non-residential buildings by 5.3%.
In June 2020, the volume of construction works grew 8% compared with June 2019, an evolution backed by residential constructions (+15.7%). Infrastructure works saw a 3.4% annual increase in June 2020 and non-residential constructions grew 11.1% on the year in June 2020.