The volume of construction works in Romania increased by 12.9% y/y in January 2022, the statistics office INS announced.
Construction activity is seasonally weak in the first month of the year, though, meaning that the performance, the highest since last April, may not indicate a similar surge for the full year. The outlook for the sector, which already saw a 0.6% negative correction last year, is complicated. The challenges faced by the sector through this year, ranging from the rise in the price of construction materials to the rising interest rates and regional turmoil prompted by the war in Ukraine, are multiple.
While the residential sector was the engine of growth in recent years, this may change as households face budget constraints.
Instead, the government, with the National Recovery and Resilience Plan (PNRR)-financed infrastructure works, is likely to take over as the main growth driver.
By type of project, the activity in the residential buildings sector remains the most dynamic with a 37.7% y/y advance in the first month of the year, followed by that of the non-residential building sector (+25.7% y/y). The volume of civil engineering construction works decreased by 6%.
By type of work, the volume of maintenance and repair works surged by 19.6% y/y in January, the volume of capital repair works advanced by 11.6% y/y and the volume of new construction works by 11.0% y/y.