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Russian construction industry recovers after the downturn - October 2010

For the first time this decade, in 2009 the construction industry in Russia, which was severely affected by the global economic downturn, shrank in comparison wit the preceding year. In the current year, a recovery has begun, prompted by the numerous projects supported or directly funded by the government. In the next few months, growth in the construction industry will be driven by the civil engineering and residential construction subdivisions of the market, whereas the non-residential subgroup remains relatively subdued.

The Russian construction industry has survived its most difficult year for more than a decade. The 0.8% reduction recorded by the industry for the first three quarters of 2010 looks remarkably healthy in comparison with the 18.4% slump recorded last year, and construction firms are now much more optimistic about the future than they were just a few months ago. The most successful of them have concluded contracts worth billions of dollars and are planning to take on employees and purchase new building machinery.

The article is based on the report “Construction sector in Russia 2010. Development forecasts for 2010-2013 ”.


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