- Hans Weber
- December 1, 2023
Czech Construction Industry Witnesses a Resurgence with 1% Yearly Growth in June: Promising Uptick Signals Potential Economic Recovery
The Czech construction sector emerges resolute from a four-month spell of contraction, reporting a noteworthy 1% annual upswing in production during June. This rejuvenation is underscored by advancements in both ground and engineering construction. The Czech Statistical Office’s report further elucidates that, when scrutinized on a monthly basis, construction production witnessed an even more substantial escalation of 2.5%.
Within the realm of earthworks construction, encompassing residential and non-residential edifices, production marked a 0.7% ascent. Simultaneously, engineering construction, entailing the construction of thoroughfares, energy networks, and telecommunication infrastructure, manifested a commendable year-on-year production growth of 1.6%.
Conversely, a contemporaneous decline in the issuance of building permits has come to the fore, with a discernible 8.7% year-on-year contraction equating to a meager issuance of 6,759 permits. Additionally, the cumulative value of sanctioned construction undertakings bore a 15% dip, settling at 44 billion Czech koruna. This downturn is partly attributable to the weight of an elevated base comparison from the antecedent year.
Petra Cuřínová, the Head of the Construction and Housing Statistics Department at the Czech Statistical Office, expounded that the downturn in permitted construction projects can be primarily ascribed to the previous year’s sanctioning of an expansive logistics center construction.
In tandem with this intricate dynamic, the construction landscape has witnessed a surge in the completion of projects, marking a commendable 4% annual growth, culminating in 2,469 units attaining completion in June.
Concurrently, within construction enterprises housing over 50 personnel, the average employee count sustained a marginal 0.4% dip on a yearly scale. In contrast, the average monthly gross wage scaled appreciably higher, registering an impressive 9.9% augmentation.
This promising resurgence within the construction sector bears auspicious tidings for the Czech economy, which has grappled with the repercussions of the COVID-19 pandemic. The sector’s potential to persist in this upward trajectory bodes well for the country’s endeavor towards economic recovery. As this trend unfolds, it may emerge as a pivotal cornerstone underpinning the nation’s resurgence from the pandemic-induced economic downturn.
Article by Prague Forum