This year will be worse for construction than the year 2009

Prague - This year will be worse for construction than 2009. At the Forum of Czech Construction, Miloslav Mašek, the general director of the Association of Entrepreneurs in Construction (SPS), said today. According to the Czech Statistical Office, construction output at constant prices was lower by one percent for the entire year of 2009.
    "This year will be much harder. There has been a drop in orders mainly in civil engineering, but the number of orders for engineering structures is also decreasing," Mašek stated.
    The greatest impact of the crisis has affected civil engineering, which mainly includes the construction of buildings and apartments. "Recent developments signal a sharp decline in building permits for residential construction," said Minister for Local Development Rostislav Vondruška at the conference.
    Last year, according to the CSO, 37,319 apartments were started in the Czech Republic, which was a year-on-year decrease of 14.3 percent. The number of commenced constructions was lower than the number of completed apartments for the first time in 15 years last year. "We lack development projects and incentives in residential construction," noted the SPS director.
    According to the head of the association, the decisive factor will be an improvement in economic performance. After the initiation of economic growth, a resurgence in construction will follow with a certain delay, he claimed.
    "The path of construction out of recession will not be quick or easy," Mašek stated. "We are facing a certain period of stagnation," added the head of the Ministry for Local Development, referring to the development of apartment construction.