Romania’s construction sector declined by 5.7% in the first seven months of this year despite a 5.8% increase of the local economy in the first half of this year.
Last year, the construction sector as a whole also saw a 2% drop, to EUR 9.6 billion, moving in contrast with the economy.
The negative evolutions were mainly determined by underfinancing in the local infrastructure sector, according to credit insurance and debt recovery company Euler Hermes.
Engineering work, which has the highest weight in the construction sector, went down by 25.7% in the first seven months of this year and non-residential work went down by 11.4%. The drop was partly compensated by the residential construction sector, which increased its production by 81.2%.