Romania's construction works down 5.9% in 2024 after 30% surge in past two years
<p>The volume of construction works reported by Romanian companies in 2024 contracted by 5.9% compared to 2023, a significant correction after the outstanding 30% combined surge seen over the past two years (2022-2023).</p>

<p>Over the past five years, the construction work volume in Romania rose by an average annual rate of 7.2%, making it one of the most dynamic economic sectors.&nbsp;</p>

<p>The government's forecasting body, CNP, expects a 5.0% y/y advance in 2025, followed by stronger growth rates in the coming years. Public investment projects are likely to remain the main growth drivers, with the logistics and industrial non-residential buildings segment also contributing.</p>

<p>The construction works volume contracted by 11.8% y/y (-2.9% q/q in seasonally-adjusted terms) in Q4, in the steepest decline seen in eight years.</p>

<p>In 2024, the plunge was driven by the 22% y/y collapse of the residential buildings segment, which furthermore had advanced by only 3.5% over the previous two years. Over the past five years, however, the volume of construction works rose by 21.4% (+4.0% per year on average).</p>

<p>The volume of non-residential building work contracted by 8.0% y/y in 2024 after a 26.1% y/y advance in the past two years. Over the past five years, the segment's advance measured 14.0% (+2.7% per year on average).</p>

<p>The segment of civil engineering works was the sole that remained in the positive territory last year, with a 2.0% advance on top of the 49.3% combined surge in the previous two years. From a five-year perspective, the segment surged by 69.3% (+11.1% per year on average), driven by major public infrastructure projects.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com" rel="noopener" target="_blank">Yury Sevryuk/Dreamstime.com</a>)</em></p>