Polish construction continues decline in 2013

After several years of upward movement, the trend in the construction industry reversed in 2012, according to the latest PMR report entitled “Construction sector in Poland, H1 2013 – Development forecasts for 2013-2015”. Although the declines were kept to a low 2%, it appears that a more significant decrease in construction output will be observed in 2013. The civil engineering construction sector will be the main driver of the construction decline as road construction projects came to a grinding halt. Furthermore, companies are projected to show significantly lower activity in railway construction projects, contrary to earlier predictions In addition, delayed power projects will be another drag on construction growth, especially that the number of projects that were delayed or suspended was growing. On the other hand, developments in the residential and non-residential construction segments mitigated the overall decline in the construction sector as they each reported increases to the tune of 10% in 2012. Still, residential construction output is poised to decelerate in 2013.

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