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Construction industry in deep recession

08. June 2010.

The degree of building activities in Serbia in the first quarter of 2010 was 57% smaller than in the last quarter of 2009 - it is stated by the Market Research Institute (IZIT), which also estimates that that industry is now in a deep recession.

According to the latest issue of "Current Economic Trends in Serbia" bulletin, published by IZIT, the lack of new greenfield investments additionally aggravates the position of building companies in the market and weakens their liquidity.

IZIT points out that the value of the works in buildings in the first quarter of this year was 49.1% smaller than in the same period in 2009.

- That is a sign of reduced investments in our market because buildings represent not only residential facilities, but also the facilities intended for organization of production process, storing, catering activities, etc. The value of other works, such as works on railways, roads, bridges, is also reduced, but not to such big extent - IZIT announced.

As it is pointed out, it is worrying that the value of the works in the first quarter of this year was 22.1% smaller than in the same period in 2009.

- That shows that some planned public investments in civil engineering will be late and that the lack of new investments from abroad will have a decisive effect on negative dynamics of building activities in 2010 - said the people from IZIT.

Source: eKapija