Construction gives in to review jitters

Construction gives in to review jitters

The growth momentum that construction activity in Greece had built in the second half of 2016 was brought to a halt in January, when it posted a drop, according to the data released on Wednesday by the Hellenic Statistical Authority (ELSTAT).

The uncertainty that had reigned since the start of the year due to the government’s failure to complete the second bailout review led to a 12.4 percent reduction in volume and a 0.9 percent drop in area covered by the 769 building permits issued in the year’s first month.

The latter half of last year had seen an increase thanks mainly to investments in the tourism sector, such as spending on new hotels and renovation of existing units.

In the 12 months to last January (from February 2016 to January 2017) there was a 3.8 percent drop in building permits issued, with a 12 percent decrease in area and a 29.3 percent reduction in volume compared to the 12 months before. Those figures would have been far greater were it not for the recovery recorded from June to November 2016, which saw some considerable increases in terms of volume of constructions for which licenses were issued.

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