Romania’s construction industry remains major economic growth driver
Romania’s construction works index accelerated to an annual growth rate of 13.8% in Q3, from 11.0% y/y in Q2, driven by the public works segment (+32% y/y) and certain improvements in the area of non-residential buildings (+4.9% y/y).
The fiscal constraints will probably dent the overall construction industry performance in Q4, although the multiannual EU budget and the Resilience Facility should keep some worksites busy despite the government’s financial constraints.
The residential building area posted a double-digit contraction (-11.2% y/y) for the second consecutive quarter, and is still bleeding.
The seasonally adjusted construction works index increased impressively by 5.7% y/y in Q3.
Interestingly, the growth in both annual and quarterly terms was driven by new construction works, according to the breakdown on the type of works (not the specific destination of the project): +18.7% y/y and +9.1% q.q in Q3.
The construction works index in the 12-month period to September 2023 increased by 15.3% y/y, compared to the 12.9% y/y advance in 2022 and remains a major driver for the entire economy of the country.
The state forecasting body CNP estimates the gross value added generated by the sector up 7.8% y/y in 2023, to further accelerate: at over 9% y/y in 2025-2026 as the projects under the Resilience Facility have to be commissioned. For 2024, only a small slowdown to 7% y/y is envisaged.
Despite lapse in demand, firms said to retain positive attitude on 12-month outlook for activity, which remained historically elevated. Inflationary pressures continued to retreat.
Industrial prices in Romania increased by 2.4% in September-October.
GDP also up by 0.2% quarter-on-quarter as trade surplus makes up for lower domestic demand.
Russian service providers recorded a modest expansion in business activity during November, according to the latest PMI survey from S&P Global, but the rate of growth slowed somewhat from October.
Largest number of jobs created in construction, IT&C and hospitality sectors.
SELECT `n`.`nid` AS `id`, `n`.`title`, 'bne IntelliNews' AS authors, 'bne IntelliNews' AS bylines, `wc`.`field_website_callout_value` AS `summary`, `smc`.`field_social_media_callout_value` AS `social`, `pd`.`published_at` AS `date`, `p`.`field_publication__tid` AS `publication_id`, `fm`.`uri` AS `image`, `fspcaption`.`field_story_photo_caption_value` AS `image_credit`, `fspcredit`.`field_story_photo_credit_value` AS `image_author`, `ws`.`field_website_sections_tid` AS `section_id`, `fdfs`.`field_subject_tid` AS `subject_id`, `db`.`body_value` AS `body`, `fm2`.`uri` AS `pdf`, `et`.`field_enable_tracking_value` AS `tracking`, `ht`.`field_head_tags_value` AS `headTags`, `bt`.`field_body_tags_value` AS `bodyTags` FROM `node` AS `n`
LEFT JOIN `field_data_field_website_callout` AS `wc` ON wc.entity_id = n.nid
LEFT JOIN `field_data_field_social_media_callout` AS `smc` ON smc.entity_id = n.nid
LEFT JOIN `publication_date` AS `pd` ON pd.nid = n.nid
LEFT JOIN `field_data_field_publication_` AS `p` ON p.entity_id = n.nid
LEFT JOIN `field_data_field_story_picture` AS `sp` ON sp.entity_id = n.nid
LEFT JOIN `file_managed` AS `fm` ON fm.fid = sp.field_story_picture_fid
LEFT JOIN `field_data_field_story_photo_caption` AS `fspcaption` ON fspcaption.entity_id = n.nid
LEFT JOIN `field_data_field_story_photo_credit` AS `fspcredit` ON fspcredit.entity_id = n.nid
LEFT JOIN `workflow_node` AS `wn` ON wn.nid = n.nid
LEFT JOIN `field_data_field_website_sections` AS `ws` ON ws.entity_id = n.nid
LEFT JOIN `field_data_field_subject` AS `fdfs` ON fdfs.entity_id = n.nid
LEFT JOIN `field_data_body` AS `db` ON db.entity_id = n.nid
LEFT JOIN `field_data_field_file` AS `ff` ON ff.entity_id = n.nid
LEFT JOIN `file_managed` AS `fm2` ON fm2.fid = ff.field_file_fid
LEFT JOIN `field_data_field_enable_tracking` AS `et` ON et.entity_id = n.nid
LEFT JOIN `field_data_field_head_tags` AS `ht` ON ht.entity_id = n.nid
LEFT JOIN `field_data_field_body_tags` AS `bt` ON bt.entity_id = n.nid WHERE (n.status = 1) AND (n.type = 'article') AND (n.nid = 302018) AND (wn.sid= 3) AND (p.field_publication__tid = '1019') LIMIT 1