According to calendar-adjusted data at constant prices, the volume of construction output in Latvia in the 2nd quarter of 2020, compared to the 2nd quarter of 2019, has decreased by 0.6%, according to the latest data of the Central Statistical Bureau (CSB). The volume of construction decreased in construction of buildings – by 5% and in civil engineering – by 7.7%, but increased in specialized construction works – by 12.3%.
The volume of construction output in the second quarter of this year was negatively affected by both the COVID-19 pandemic (drop in demand) and the lack of large construction sites. COVID-19 was mentioned as a reason for the decrease in the volume of construction works by 47 or 5.9% of the surveyed construction companies.
The most significant decline in construction output compared to the corresponding quarter of the previous year was in civil engineering, which was affected by a decrease of 15.6% in road and railway construction and 46.6% in construction of hydraulic structures and other unclassified civil engineering. In turn, the volume of production in the construction of urban infrastructure objects increased by 27%.
The increase in construction was in the areas of specialized construction works such as electrical installation, plumbing and other similar activities – by 16.5%, as well as in other specialized construction works and demolition of buildings and site preparation – by 27.7% and 26.4%, respectively.
In the 2nd quarter of 2020, compared to the 1st quarter of 2020, the volume of construction output according to seasonally adjusted data at constant prices decreased by 12.9%, including in construction of buildings – by 12.2%, in civil engineering – by 10.3% and in specialized construction works – by 13.8%.
Building permits issued
In the 2nd quarter of 2020, 698 building permits were issued for the commencement of construction, overhaul, reconstruction and restoration of residential buildings for the total area of 194 thousand. square meters or by 297 building permits less and by 28 thousand. square meters smaller area than in the 2nd quarter of 2019, including 503 building permits issued for new construction with an estimated area of 144 thousand. square meters (by 240 building permits and by 21 thousand square meters less expected area than a year earlier). 402 building permits have been issued for the start of construction of new one-apartment houses (estimated area – 77 thousand square meters).
For the start of construction, overhaul, reconstruction and restoration of non-residential buildings, 371 building permits were issued for the total area of 303 thousand. square meters (by 95 building permits and by 104 thousand square meters less expected area than in the 2nd quarter of 2019), including for new construction – 236 building permits for the estimated area of 160 thousand square meters. square meters. 55 building permits for the total area of 82 thousand m2 were issued for the commencement of construction, overhaul, reconstruction and restoration of industrial production buildings and warehouses. square meters, of which 34 building permits – for new buildings with a total area of 60 thousand. square meters.
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