Construction works in B&H recorded a growth of 6,2 percent after nine months in 2013. This is the result of a growth of 10 percent in the FB&H and stagnation in the RS (slight decrease of 0,1 percent).
An analysis of the Directorate for Economic Planning B&H shows that there is a strong growth in investment in transport infrastructure of 26,7 percent, and was the sole source of this growth, given that all other categories of works marked a significant decline.
This also shows that public investments were the main reason for an increase in works in 2013.
On the other hand, the annual reduction in the state of housing loans to citizens in September of 1,5 percent, and a decrease in disposable income led to a nine-month decrease in residential construction of 16,9 percent.
With this in mind, a similar trend is marked in both entities as opposed to non-residential buildings, behind whose stagnation at the B&H level hides a drop of around 11 percent in the FB&H, and a strong growth in the RS of around 30 percent.
The signing of the stand-by arrangement with the IMF opened the door to affordable sources of infrastructure financing of other international creditors, which probably funded significant portion of the increase of public works.
‘’However, it should be emphasized that this is only about increasing the value of works that was not accompanied by an increase in employment in the construction industry, which could indicate that these are complex and expensive construction projects that are quite capital-intensive’’, said the Directorate for Economic Planning.
Unfortunately, they said that the intensity of growth of works gradually weakens works from quarter to quarter, so that the rate of growth of 7,4 percent in the first was reduced to 5,2 percent in the third quarter.
(Source: klix.ba)
