The decline is mainly attributed to the increase in raw materials and difficulty in distribution networks as well as reduced demand. The Russian invasion in Ukraine has clearly worsened conditions in the construction industry.
Construction activity fell by 2.5% in the euro area and by 2.0% in the EU in 2022 and the decline is expected to continue in 2023.
Among the Member States for which data are available, the largest monthly declines in construction activity were recorded in Germany (-8.0%), Austria (-7.6%) and Poland (-3.8%).
The highest increases were seen in Slovenia (+10.6%), Slovakia (+9.5%) and Sweden (+4.3%).
Infrastructure and building construction projects halted
In the euro area in December 2022, compared to December 2021, civil engineering projects decreased by 1.5% and building construction by 1.3%.
Among the Member States for which data are available, the largest annual declines in construction output were seen in Germany (-8.2%), Spain (-6.3%) and Austria (-6.0%).
The highest increases were recorded in Slovenia (+74.5%), Romania (+18.4%) and the Netherlands (+4.9%).
On the same wavelength and the construction activity in Greece which increased by 3% in the 1st quarter of 2022 and by 14.8% in the 2nd quarter to follow a big plunge of -0.6% in the 3rd quarter of 2022.
Rising costs for building materials and labor shortages have resulted in many projects being either canceled or postponed.
A typical example is the cancellation of the SNF tender for the construction of the three new hospitals in Komotini, Thessaloniki and Sparta as all the bids submitted were much higher than the financial object of the donation.
