Romania's construction works down 5.9% in 2024 after 30% surge in past two years

The volume of construction works reported by Romanian companies in 2024 contracted by 5.9% compared to 2023, a significant correction after the outstanding 30% combined surge seen over the past two years (2022-2023).

Over the past five years, the construction work volume in Romania rose by an average annual rate of 7.2%, making it one of the most dynamic economic sectors.

The government's forecasting body, CNP, expects a 5.0% y/y advance in 2025, followed by stronger growth rates in the coming years. Public investment projects are likely to remain the main growth drivers, with the logistics and industrial non-residential buildings segment also contributing.

The construction works volume contracted by 11.8% y/y (-2.9% q/q in seasonally-adjusted terms) in Q4, in the steepest decline seen in eight years.

In 2024, the plunge was driven by the 22% y/y collapse of the residential buildings segment, which furthermore had advanced by only 3.5% over the previous two years. Over the past five years, however, the volume of construction works rose by 21.4% (+4.0% per year on average).

The volume of non-residential building work contracted by 8.0% y/y in 2024 after a 26.1% y/y advance in the past two years. Over the past five years, the segment's advance measured 14.0% (+2.7% per year on average).

The segment of civil engineering works was the sole that remained in the positive territory last year, with a 2.0% advance on top of the 49.3% combined surge in the previous two years. From a five-year perspective, the segment surged by 69.3% (+11.1% per year on average), driven by major public infrastructure projects.

(Photo source: Yury Sevryuk/Dreamstime.com)