Construction stagnating, no longer driving economic growth – think tank

May 29, BPN. The construction sector is no longer a driver of economic growth in Belarus, says the recent analysis by Košt Urada (Cost of Government) think tank.

The sector does not show the signs of growth expected by the government, the experts said noting a decrease in housing completed by the end of April. The trend “does not look threatening” yet but it is still important since the government relies on construction to spur the economy this year, it added.

Housing construction fell by 25.5 percent in the first four months of 2023 year on year, according to the National Statistical Committee (Belstat). It also reported an almost 32-percent drop in the total floor area to 1.3 million square meters of housing.

On May 27, Minister of Economy Alaksandr Čarviakoŭ announced on TV that a total of 4.6 million square meters would be built in 2023.

In 2022, new apartments built decreased by 5.7 percent to 49,400 compared to 2021. The total floor area dropped by 3.7 percent to 4.2 million square meters.