Construction industry expecting decline in production by 3.2%

Construction output in the Czech Republic is estimated to decrease by 3.2 % in 2011. A larger decline in the EU is waiting only for Portugal, Ireland and Spain. Recent estimate of the European professional association Euroconstruct shows this.

The decline in the sector in the last year was estimated at ten per cent. During the economic crisis the most stable results in selected European countries were recorded in construction of civil engineering, such as roads and railways, according to experts. Government austerity measures may change this, which applies also to the Czech Republic. The potential threat of public spending cuts will negatively affect the infrastructure in the Czech Republic, Spain and Great Britain,” Euroconstruct report states. For 2012, Euroconstruct decreased growth forecast in the Czech industry to 0.2 %. In mid-year, the growth estimate of domestic construction industry was 2.1 %.

Euroconstruct is a European association of 19 specialised research institutes. It has been in operation since 1975. It regularly publishes up-to-date estimates of short- and medium-term trend in European markets. Members of the association are 19 European countries including the Czech Republic.

** European construction industry in 2011 – 2013 (percentage changes in fair value):**

Source: Euroconstruct (70th conference)