Romania\u2019s construction work volume increased by 18.3% y\/y in the second quarter of the year (Q2)\u00a0with the segment of work on new projects (+21.7% y\/y) outperforming the average \u2013 which indicates more confidence among developers, according to data published by the statistics office INS. The construction activity accelerated from +7.7% y\/y in Q1, when the segment of new projects (+9.1% y\/y) also outperformed the capital repairs and current repairs.<\/p>\n
The residential buildings segment (+25.9% y\/y) was the most dynamic one in Q2, while those of non-residential buildings (+15.6% y\/y) and civil engineering (+16.9% y\/y) advanced at double-digit rates as well.<\/p>\n
On a seasonally-adjusted basis, the volume of construction work in Q2 leapt up by 11.6% q\/q, driven by the new constructions segment (+13.9% y\/y).<\/p>\n
For the first half of the year, the construction work volume rose by 13.9% y\/y, and the segment remains one of the key economic drivers, in the context of a 0.8% y\/y (or 1.6% y\/y depending on methodology) contraction of the GDP for the period. Romania\u2019s GDP contracted by 0.4% y\/y (or 2.0% y\/y, depending on methodology) in Q2, after negative annual performance in the first quarter of the year.<\/p>\n
In a broader perspective, the construction work volume in Romania reached new records in Q2, driven by outstanding volumes in the civil engineering segment where the financing under the EU-funded RRF and cohesion schemes is visible. The residential buildings segment has been in recovery mode for the past two and a half years after a decline promoted by higher interest rates and bleaker consumer confidence during 2023 and the first half of 2024.\u00a0<\/p>\n
The strong recovery in the first half of this year, besides the above-average performance of non-food sales, indicates better sentiment among affluent households amid visible budget constraints and bleaker sentiment among households on average.\u00a0<\/p>\n
On the other hand, activity in the residential buildings segment remains at the levels of the years 2021-2023 (7.9% above the 2021 average), while the non-residential segment (+34.4% above the 2021 average) and civil engineering segment (+78.8% above the 2021 average) have advanced more robustly.\u00a0<\/p>\n