Czech construction loses Kc443bn,firms shed 50,000 jobs in crisis


22.04.2014 14:06

Prague - Czech construction lost Kc443bn during the crisis and 50,000 people have been fired in the sector since 2008, Miloslav Masek, CEO of the Building Entrepreneurs Association, said at a press conference today.


Dělníci na stavbě. Ilustrační foto. ČTK Taneček David

The aggregate fall virtually means a loss of annual sales, he stressed.

The number of large building companies declined by 25 percent. Builders said the situation is unlikely to change in the current year, possibly in 2016.

Sales totalled Kc547.5bn in the record year 2008, while last year the figure was Kc150bn lower.

Statistical data show that 767 firms with 50+ staff were active in the sector in 2008, employing 110,000 people, while last year the sector registered 578 companies with 84,000 employees. The figures, however, apply to the largest firms, said Masek.

According to him, firms not prepared for the crisis as well as those performing well but suffering from a lack of public contracts have gone bankrupt.

A mild winter is behind a modest annual growth in building output in the first three months of the year, said the Czech Statistical Office.

"The amount of contracts has been falling in all segments, however, and we think that the current year will not be a year of a change as nothing indicates this is going to happen," Masek pointed out.

"The situation might stabilise next year, and the year 2016 can possibly see a first modest increase," Masek said.

According to him, the Czech Republic is the last country in Europe whose construction keeps falling.

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