Romania's construction works index shrinks in 2018 for third year in row

The volume of construction works in Romania, measured by the statistics office INS, decreased in 2018 for the third year in a row.

The construction works index was 4.1% lower last year compared to 2017. The market thus shrank by 13.5% in three years, a compression of unusual magnitude for the current stage of the economic cycle.

Compared to the peak level reached in 2008, before the recession, the volume of construction works was 32% lower in 2018.

The decline, either measured over the past three years and since 2008, has not been even across the market’s segments. The construction of residential buildings decreased by 24% in 2018 compared to 2017 but was 45% above 2015. Versus 2008, the activity in the residential buildings segment was 17% lower.

The volume of non-residential buildings completed in 2018 edged down by 5.5% versus 2017 and has declined at more constant speed: it was 16% smaller than in 2015 and 29% below the 2008 level. The volume of civil engineering works edged up by 8% in 2018, on a low base, but it is still a massive 35% below the level seen in 2008.

(Photo source: Pixabay.com)