Serbia, Construction activity in decline by 13.7 percent

Published on 11. February 2023., News

The value of completed works in construction decreased by 13.7 percent in the fourth quarter of last year compared to the same period in 2021. The value of completed works on buildings decreased by 12.8 percent and on other buildings by 14.2 percent in constant prices, Republican Bureau of Statistics announced today.

Observed according to regions, the value of works decreased the most in Belgrade (30.9 percent), then in the Region of Southern and Eastern Serbia (19.8 percent), in Vojvodina (1 percent), and in the Region of Šumadija and Western Serbia (0.3 percent).

Let us remind you that construction activity fell by 13.5 percent in the third quarter, with the fact that at that time in Belgrade, the decline amounted to 25 percent. The main “culprits” are the skyrocketing prices of raw materials, the unpredictability of construction costs and a noticeable decline in private investments.

Although the construction sector of the Eurozone also recorded the biggest decline since the pandemic brought the economy to a standstill in 2020. Rising borrowing costs, a sharp rise in raw material prices and concerns that a recession could accelerate the decline in property prices have weighed on Europe’s construction industry.

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