Russian recovery continues
By Helen Wright09 May 2011
Russia's construction industry contracted by -0.6% last year, after increases in the country's residential sector fuelled the recovery. This represented a marked improvement from the decline of -13.2% recorded in 2009.
According to the latest data from economic forecaster PMR, 2010's improvement was achieved despite a tight budgetary situation which resulted in cuts to Russia's transport infrastructure spending.
PMR said the wildfires that ravaged parts of Russia in the summer of 2010 had fuelled demand for housing, and 2200 new homes had been built over two-month period in 2010 for the victims of the disaster. In addition to housing, more than 200 km of roads and 100 km of gas pipelines were also needed.
The construction sector also received a boost from the decision to award the 2018 FIFA World Cup to Russia, which will require stadiums, airports, road and rail connections to be either built or modernised in the coming years.
In addition, PMR said civil engineering projects related to the 2012 Asia-Pacific Economic Cooperation (APEC) Summit in Vladivostok and the 2014 Winter Olympics in Sochi have also been major drivers of construction activity, with many of these projects nearing completion.
PMR reiterated its forecast that the Russian construction sector would return to growth in 2011, with overall volume of spending on infrastructure development expected to increase in line with the value of construction contracts signed.