Construction experienced modest growth of 3.5% y/y in the first quarter of 2024, following three consecutive quarters of decline, a report released by Simonis Storm reveals.
This growth was significantly lower compared to the 26.8% y/y increase seen in the first quarter of 2023.
“The NSA attributed this minimal growth primarily to activities in the green hydrogen sector. The real value of government expenditure on construction declined by 31.5% y/y in the first quarter of 2024, in stark contrast to the 15.9% y/y growth recorded in the same period in 2023. The sluggish growth in the construction sector was largely due to reduced government spending, with a significant contraction observed in transport infrastructure projects, as reported by the NSA.
“Additionally, in the first quarter of 2024, the real value of approved and completed building plans recorded growth of 1.0% y/y. This was a significant improvement from the -5.5% y/y recorded in the first quarter of 2023, though it was lower than the 15.7% y/y growth recorded in the previous quarter,” says Simonis Storm.