Romanian growth

24 April 2008

The Value Of Romania's construction market is expected to grow by +15% to +20% year-on-year in 2006, to about € 7 billion, according to the country's construction sector employers union, Patronatul Societătţilor din Construcţii (PSC).

PSC president Gheorghe Polizu, said the construction market enjoyed a +7% to +8% rise year-on-year in 2005, according to reports in the Romanian News Digest (RND).

Mr Polizu was also reported as saying that he expects the market to grow at a similar rate to 2006 in 2007, mainly thanks to large-scale infrastructure projects, as the country gears up to join the EU on 1 January 2007.

In 2000 the value of Romania's construction market stood at € 3 billion, in 2001 it was € 3,7 billion, in 2002 it was € 4 billion and in 2003 it was € 4,4 billion.

However, the report also sounded a warning over increased materials costs, expected to rise by +20% to +30% in 2006.

Mr Polizu said the rise was due to an increase in utility costs, particularly natural gas, and wages.

PSC executive officer Adriana Iftimie said the rise follows a similar +20% rise in construction costs in 2005. However, Ms Iftimie said continually large rises could see a possible 50% of Romania's construction companies forced out of business within the next two years.

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