Romania Construction Industry Report 2022: Russia's Invasion of Ukraine will Continue to Put Upward Pressure on Prices in the Short-term - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Romania Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Romania shrunk by 1.4% in real terms in 2021, following a relatively strong performance in 2020, expanding by 9.3% despite the disruptions caused by the Coronavirus (COVID-19) pandemic.

The industry's output in 2021 was affected by a weak performance in the later part of the year. According to preliminary data released by Eurostat, the construction industry's value add declined by 3.1% year on year (YoY) in Q4 2021, compared to a Y-o-Y decline of 6.3% in Q3 and growth of 7.6% in Q2 2021.

The decline in construction activities in 2021 was mainly due to a contraction in non-residential and engineering construction works. According to National Institute of Statistic (NIS), non-residential buildings construction works declined by 11.4% YoY and engineering works declined by 6.2% YoY in 2021.

The publisher expects the Romanian construction industry to expand by 3.8% in real terms in 2022, driven by investment in transportation and energy projects.

Growth will also be supported by the government's plan to allocate an additional RON15.5 billion ($3.8 billion) to the Anghel Saligny infrastructure development programme and RON19.8 billion ($4.8 billion) for public investment in infrastructure, including roads and railways and the construction of affordable housing.

In the short term, however, soaring energy costs and disruptions to construction supply chains caused by Russia's invasion of Ukraine will continue to put upward pressure on the prices of key construction materials, potentially leading to a slowdown in construction output over the coming quarters.

Moreover, the heightened risk of spillover effects in countries neighbouring Ukraine could undermine investor confidence in Romania, which could dampen investment levels in the industry as a result of capital flight.

Between 2023 and 2026, the industry is expected to register an annual average growth of 3.9%, aided by an improvement in consumer confidence and regional economic conditions, as well as greater investment in transport and renewable energy infrastructure.

The government plans to invest RON22.2 billion ($5.4 billion) on upgrading the country's road transport and highway infrastructure between 2021 and 2025, as part of a 15-year plan to improve transportation. The plan involves an overall investment of RON390.1 billion ($94.7 billion) to maintain and modernise the country's road network between 2015 and 2030 and will be a key driver of the construction industry's growth over the long term.

Scope

• Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Romania, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/a5zk6v