Czech Republic Sees a Decline in Construction Production in July

In July, the Czech Republic experienced a 2.1 percent year-on-year decrease in construction production, with an even more significant monthly drop of 3.8 percent, according to data released by the Czech Statistical Office (ČSÚ). The most significant decline was observed in the land construction segment.

While construction production saw a year-on-year increase of 1 percent and a monthly increase of 2.5 percent in June after four consecutive declines, it returned to a decline in the first month of summer.

Petra Cuřínová, the head of the construction statistics and housing construction department at ČSÚ, noted that construction production in July fell below last year’s levels, with a year-on-year decline of 2.1 percent. This decline was observed in both land and engineering construction segments, with land construction experiencing a more pronounced decrease of 2.5 percent compared to the 1.3 percent decrease in engineering construction year-on-year.

The decline in construction production is a cause for concern for the Czech Republic’s economy, which has been grappling with the impacts of the COVID-19 pandemic. The construction sector, a significant contributor to the country’s GDP, has been particularly affected by the pandemic’s disruptions in supply chains and economic activities.

The Czech government has implemented several measures to support the construction sector, such as subsidy programs for renovating apartment buildings and constructing energy-efficient structures. However, the effectiveness of these measures in mitigating the pandemic’s effects on the sector remains to be seen.

Moreover, the decline in construction production poses challenges for the Czech Republic’s sustainable development goals, particularly its target of reducing greenhouse gas emissions by 40 percent by 2030. The construction sector plays a crucial role in achieving this goal as it contributes significantly to the country’s emissions.

Addressing the issues facing the construction sector will be essential for the Czech Republic’s economic recovery and its pursuit of sustainability targets.

Article by Prague Forum

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