The total building permits issued in the first half of 2009 fell by almost one fifth year-on-year, below 24,000, according to data published yesterday by the National Institute of Statistics (INS). In the first quarter of this year, the construction sector was the only one with a positive evolution, softening the drop of gross domestic product (GDP), and the government had hoped that this situation would continue. However, the new data puts in doubt the potential of this sector for continued growth.
One of the members of the Board of Directors of the Romanian Association of Entrepreneurs in the Construction Sector (ARACO), Alexandru Dobre, said that the construction market will no longer compensate for the decline in GDP, as in the first quarter, when the increase “followed the 2008 trend.”
“People have stopped building; they are waiting. If the “First Home” turns out to be a serious program, we still cannot talk about a rebound any sooner than February-March 2010,” said Dobre, who estimates that the lowest level will be registered in this year’s final quarter.
