Construction activity collapses

  • 2010-08-18
  • From wire reports

STILL STANDING: The building industry struggles to rebound.

RIGA - Compared to the first quarter of 2010, construction output fell by 19.5 percent in the second quarter, according to seasonally adjusted data at constant prices, shows the Central Statistical Bureau, reports Construction activity of buildings decreased by 26.7 percent, but the volume of civil engineering structures constructed grew by 7.7 percent.

In the second quarter of 2010, construction output (at current prices) comprised 174.0 million lats (248.5 million euros), and 281.1 million lats in the first half-year.
Construction of motorways, streets, roads, airfields, runways, railway lines totaled 34.3 million lats in the second quarter, bridges and tunnels - 17.1 million lats, pipelines, communication and power lines - 13.5 million lats, office buildings 12.2 million lats, schools, universities and research institutions - 9.7 million lats, residential buildings - 9.5 million lats.

Compared to the second quarter of 2009, construction output in the second quarter this year decreased 35.3 percent, according to working day adjusted data at constant prices. Of this, construction of buildings dropped by 36.7 percent and the volume of civil engineering structures constructed fell by 34.5 percent.

The most notable reduction of construction and repairs, if compared to the corresponding period of the previous year, was observed in construction of pipeline mains, communication and power lines and in the construction of local pipelines and cable lines - by 91.1 percent and 83.6 percent, respectively. Construction volumes grew only in construction of schools and kindergartens - by 14.2 percent.

Compared to the first half of 2009, construction in the first half of 2010 (calculated at constant prices) has reduced by 38.3 percent, including a 37.1 percent fall in construction of buildings and a 39.3 percent reduction in construction of civil engineering structures.