In 2016, a 17.8 % decrease recorded in construction output

13.02.2017

The latest data compiled by the Central Statistical Bureau of Latvia (CSB) show that, compared to 2015, in 2016 construction output1 declined by 17.8 %, according to calendar adjusted data.  Construction output at current prices amounted to 1425.9 million euros.

Decline in construction of civil engineering structures of 33.3 % (40.7 % of the total construction output) put notable downward pressure on the construction output. Drop was observed in almost all fields of construction of civil engineering structures – 31.3 % in construction of harbours, waterways, dams and other waterworks, 29.9 % in construction of bridges, elevated highways, tunnels, and 29.5 % in construction of highways, streets and roads, airfield runways, and railways. Significant decline was recorded also in construction of local pipelines and cables – of 11.5 %. Increase, in turn, was observed in construction of long-distance pipelines, communication and electricity lines – of 6.2 %.

Last year, construction of buildings reduced by 2.2 %, which was due to the 4.0 % decrease in construction of non-residential buildings.

Index of production in construction
(2010=100)

  

Compared to the corresponding period of 2015, in the 4th quarter of 2016 construction output (according to calendar adjusted data at constant prices) fell by 11.8 %, constituting 441 million euros at current prices.

The decline recorded in the 4th quarter of 2016 was influenced by 28.5 % decrease in output of construction of civil engineering structures, which was affected by the decline in construction of bridges and tunnels of 50.6 %, construction of highways, streets, roads, airfield runways, railways of 25.9 %, as well as construction of harbours, waterways, dams and other water works of 15.1 %. In its turn, an increase – of 8.8 % – was observed in construction of long-distance pipelines, communication and electricity lines.

Compared to the corresponding period of the previous year, in the 4th quarter of 2016 construction of buildings increased by 6.1 %, of which construction of residential buildings grew by 36.5 %, whereas construction of non-residential buildings reduced by 2.1 %.

Compared to the quarter before, in the 4th quarter of 2016 construction output increased by 2.6 % (according to seasonally adjusted data at constant prices), of which construction of buildings by 5.8 % and construction of civil engineering structures by 2.5 %.

 

Construction output and changes thereof

 

Total (at current prices, mln euros)

2016, compared to 2015, % (calendar adjusted data at constant prices)

Q4 2016

compared to

2016

Q4 2016

Q3 2016, % (seasonally adjusted data at constant prices)

Q4 2015, % (calendar adjusted data at constant prices)

Total

1425.9

441.0

-17.8

2.6

-11.8

of which:

 

 

 

 

 

Residential buildings, total

234.6

70.4

2.0

11.5

36.5

Non-residential buildings, total

610.9

185.0

-4.0

0.3

-2.1

Hotels and similar buildings

59.4

13.7

46.4

-0.9

-12.2

Office buildings

96.0

31.2

0.8

37.8

-4.5

Wholesale and retail trade buildings

33.8

10.1

-28.9

5.6

-28.0

Production buildings and warehouses

101.4

30.7

1.3

0.7

42.2

School, university and research buildings

61.8

17.9

-33.4

0.4

3.0

Hospital or institutional care buildings

35.2

12.3

-21.8

5.5

-23.0

Civil engineering structures, total

580.4

185.6

-33.3

2.5

-28.5

Highways, streets, roads, airfield runways, railways

266.0

76.2

-29.5

4.6

-25.9

Bridges and tunnels

22.2

5.7

-29.9

-41.4

-50.6

Harbours and dams

40.5

17.4

-31.3

63.4

-15.1

Long-distance pipelines, communication and electricity lines

94.4

29.1

6.2

5.8

8.8

Local pipelines and cables

105.6

37.5

-11.5

18.9

-10.0

 

 

In 2016, 1846 building permits2 were granted for the construction, capital repairs, reconstruction and restoration of single dwelling buildings with the total floor space 359.1 thousand m2. Out of the total number, 1329 permits or 72 % of the number thereof were issued for construction of new buildings with the intended floor space of 250.3 thousand m2. In turn, 178 building permits were granted for construction, capital repairs, reconstruction and restoration of industrial buildings and warehouses with total intended floor space of 293.6 thousand m2, of which 99 permits with the total intended floor space of 173.2 thousand m2 were issued for construction of new industrial buildings and warehouses.

In the 4th quarter of 2016, 429 building permits were granted for the construction, capital repairs, reconstruction and restoration of single dwelling buildings with the total floor space 80.8 thousand m2. The bulk of the permits (73 %) with 60.7 thousand m2 of intended floor space were issued for new construction.

Out of the total number, 32 building permits were granted for construction, capital repairs, reconstruction and restoration of industrial buildings and warehouses with the total intended floor space of 39.6 thousand m2, a half (50 %) of which with total intended floor space of 14.6 thousand m2 were issued for construction of new industrial buildings and warehouses.

 

1Own-account construction works, including construction works executed abroad.
2 Since the 4th quarter of 2014, in construction statistics the term granted permits characterises the number of records entered in the construction permit confirming that conditions for commencement of construction work have been met.

 

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More information on data:
Industrial and Construction Statistics Section
Sandra Vītola
E-mail: Sandra [dot] Vitola [at] csb [dot] gov [dot] lv
Phone: +371 67366739