ARACO: Romanian construction sector in 2017, down to 10-year low

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The construction market dropped in 2017 to a historic minimum of the last 10 years, reaching EUR 8.96 billion, a decline of 7.05 percent over the previous year, when the market value amounted to EUR 9.64 billion, according to the Romanian Association of Construction Entrepreneurs (ARACO) data.

In this context, there were recorded decreases on almost all levels in the construction sector, except in the residential construction sector, where there was a 69.7 percent drop.

Laurentiu Plosceanu, ARACO president stated that the Romanian state invested RON 26.7 billion last year in constructions, with RON 2.8 billion below 2016 level, and less than RON 25 billion in 2015.

According to him, the companies are confused by the so-called Fiscal Revolution, promoted by the Government in 2017, which has boosted the unpredictability as regards the weak financial balances of the construction companies.

Regarding the average gross wage earned by a construction worker, last year it reached EUR 512 / month, up 6.44 percent compared to 2016. Moreover, the average annual productivity per employee amounted to EUR 23,047, down 7.3 percent.

At the same time, the official data show that the share of the gross domestic product (GDP) of the construction sector has decreased to 4.6 percent, given that employers in the field claim that the sector’s potential is around 8-9 percent.

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