The construction sector in the Czech Republic showed moderate growth in 2022, with a 1.9% year-on-year increase, according to the Czech Statistical Office (CSO). The growth was driven by increases in both civil and structural engineering, with the fastest growth occurring in the first quarter of the year. However, the construction industry faced challenges such as price growth and a shortage of construction capacity throughout the year.

In December, the year-on-year decline in construction slowed to 0.2%, and output rose by 1.2% on a month-over-month basis. The number of building permits issued by the authorities fell by 5.4% year-on-year, and the indicative value of permitted constructions decreased by 1.6% to CZK 512.8 billion. Housing starts were down 7.7% year-on-year, with 41,546 flats started in 2022. Meanwhile, completed apartments increased by 14.1% to 39,460, the most since 2007.

Civil engineering construction, which includes building roads, telecommunications, and power grids, showed growth in December with an 8.2% year-on-year increase in output. The average number of registered employees in the construction industry rose 0.9% year-over-year in December, with an average monthly wage increase of 8.9%. For all of 2022, the average number of construction employees increased by 0.8% year-over-year, with average gross earnings up 7.7% from 2021.

Article by Prague Forum