NEWS: Recession of the Romanian construction market

According to the latest Eurostat report, which highlights the volume of construction works in 2012, respectively the situation of the seasonally adjusted production in 14 of the 27 countries which form the EU, and which analyzes the relevant quarterly indexes, it appears that a statistically significant recession was installed in the EU-27, which cannot be reversed on short or even medium term. Thus, after a quite similar situation, which has pointed out a decline of -3.8% in the EU-17 and -3.6% in the EU-27 (the index of the first quarter of 2012, compared with the previous quarter), in the following three months a less obvious decrease has took place only for the entire EU (0% in the euro area and -0.9% in the EU-27). The same trend was noticed between July and September 2012, when an impairment of -0.5% in the EU-27 and a stagnation in the EU-17 was remarked, without any effect at that time on the technical recession of the entire European construction sector. However, according to Eurostat, in the fourth quarter of the last year, the sequential calculation reflected a slightly more pronounced decline (-1.5%) in the EU-27 and a decrease of -1.6% in the EU-17, which actually means that not only the seasonal factor has influenced negatively the specific investments. In spite of the fact that an economic recovery of the entire EU is attempted, the investors active in the construction industry were influenced negatively by the political decisions taken at the summit of the Council of Europe, when, for the next programming period (2014-2020), a clear budget austerity has been imposed. In what concerns the construction market, it seems that a relatively long period must be passed through until two consecutive quarters of sequential growth will be recorded in order to end the state of recession. Basically, there is no information or current macroeconomic indicator which can confirm the reaching of the maximum setback point in what concerns the volume of construction works. Furthermore, the perpetuation of the crisis situation, which has already become a feature of the entire economic system of the EU, has an overwhelming impact in present, which is visible through the amplification of the phenomenon of massive restructuration of the entire industry. According to the latest Eurostat report, which highlights the volume of construction works in 2012, respectively the situation of the seasonally adjusted production in 14 of the 27 countries which form the EU, and which analyzes the relevant quarterly indexes, it appears that a statistically significant recession was installed in the EU-27, which cannot be reversed on short or even medium term. Thus, after a quite similar situation, which has pointed out a decline of -3.8% in the EU-17 and -3.6% in the EU-27 (the index of the first quarter of 2012, compared with the previous quarter), in the following three months a less obvious decrease has took place only for the entire EU (0% in the euro area and -0.9% in the EU-27). The same trend was noticed between July and September 2012, when an impairment of -0.5% in the EU-27 and a stagnation in the EU-17 was remarked, without any effect at that time on the technical recession of the entire European construction sector. However, according to Eurostat, in the fourth quarter of the last year, the sequential calculation reflected a slightly more pronounced decline (-1.5%) in the EU-27 and a decrease of -1.6% in the EU-17, which actually means that not only the seasonal factor has influenced negatively the specific investments. In spite of the fact that an economic recovery of the entire EU is attempted, the investors active in the construction industry were influenced negatively by the political decisions taken at the summit of the Council of Europe, when, for the next programming period (2014-2020), a clear budget austerity has been imposed. In what concerns the construction market, it seems that a relatively long period must be passed through until two consecutive quarters of sequential growth will be recorded in order to end the state of recession. Basically, there is no information or current macroeconomic indicator which can confirm the reaching of the maximum setback point in what concerns the volume of construction works. Furthermore, the perpetuation of the crisis situation, which has already become a feature of the entire economic system of the EU, has an overwhelming impact in present, which is visible through the amplification of the phenomenon of massive restructuration of the entire industry.  For further information and a detailed analysis of the current Agenda Constructiilor issue, click here!