Romanian constructors start year slowly after robust growth in 2020

Romania's construction works volume decreased in January by 3.6% compared to the same month of 2020, a negative performance that comes after double-digit growth rates last year.

January is typically a slow month for the construction sector, but this year one can't blame the weather, which was fine, for the disappointing performance.

The volume of civil engineering works rose by 17% year-on-year, and it is already (in seasonally adjusted terms) nearly 12% above the pre-crisis level in February 2020.

Overall, the construction works index is just under the pre-crisis level (-0.1%), but this is thanks to the Government's projects.

The residential segment's works lag nearly 16% behind pre-crisis level and those in the non-residential segment - by nearly 23%.

However, the non-residential sector thrived last year amid a robust outlook of the industrial and logistic segment. Meanwhile, the residential segment has been growing selectively in first-tier cities and particularly in Bucharest while failing to grow at a national level as it had already recovered earlier and reached saturation.

(Photo source: Somporn Suebhait/Dreamstime.com)