Press Release

Construction costs in the 2ndquarter of 2006

Compared with the 2nd quarter of 2005, construction costs in Latvia in the 2nd quarter of 2006 rose on average by 18.3%, according to the Central Statistical Bureau. The most rapid rise (by 44.5%) could be seen in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 16.9% and the prices of construction materials rose by 6.9%. The most notable increases in construction costs were 30.3% in the renovation of office buildings, 19.8% in the reconstruction and construction of industrial, agricultural and trade buildings, 18.3% in the construction of underground main pipelines and 17.5% in the construction of transport facilities. There were increases of 14.7% in the construction costs of residential buildings and 9.9% in the renovation of education and healthcare buildings.

Compared with the 1st quarter, construction costs in the 2nd quarter of 2006 increased on average by 8.8%. The increase in the labour remuneration of workers was notable, by 21.7%. There were increases of 6.1% in the maintenance and operational costs of machinery and equipment and 2.8% in the prices of construction materials. The highest cost increases were in the renovation of office buildings and renovation of education and healthcare buildings, 15.6% and 10.1%, respectively. There were the following increases in the construction costs: 8.7% in the reconstruction and construction of industrial, agricultural and trade buildings, 8.0% in the construction of transport facilities and 7.4% in the construction of residential buildings. Costs in the construction of underground main pipelines rose by 4.1%. It is worth noting that in comparison with the previous quarter such a notable rise in construction costs has not been observed since the 2nd quarter of 1995 when construction costs increased by 10.4%.

 

Prepared by the Producer Price Indices Section
Department of Price Statistics
Tel. 7366813

Aleksandrs Grzibovskis

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