In the 1st quarter of 2021, construction output decreased by 12.4 %

The latest data compiled by the Central Statistical Bureau of Latvia (CSB) show that, in the 1st quarter of 2021, compared to the 1st quarter of 2020, construction output¹ decreased by 12.4 % (according to calendar adjusted data at constant prices). The construction output decreased in construction of buildings - by 16.6 %, in civil engineering - by 11.6 % and in specialised construction activities - by 6 %. The decline in construction output was due to relatively unfavourable weather conditions for construction, Covid-19 and the state of emergency declared in the country, as well as the decline in demand for construction services.

Compared to the corresponding quarter of the previous year, the decline in output in civil engineering was influenced by a decrease in construction of water projects and other civil engineering projects n.e.c. - by 44.5 % and in construction of utility projects - by 24.4 %. In turn, construction of roads and railway increased by 17.2 %.

In specialized construction activities, construction output decreased in such areas as demolition of buildings and site preparation - by 23.3 %, building completion and finishing (plastering, floor and wall covering, painting and glazing, etc.) - by 16.6 %, electrical, plumbing and other construction installation activities - by 0.4 %. In turn, construction output increased by 2 % in other specialized construction activities.

Compared to the 4th quarter of 2020, in the 1st quarter of 2021, construction output fell by 3.7 % (according to seasonally adjusted data at constant prices), of which in construction of buildings - by 2.9 %, in civil engineering - by 9.9 % and in specialized construction activities - by 1.9 %.

Construction output changes

(as per cent, at constant prices)

Building permits granted²

In the 1st quarter of 2021, 684 building permits were issued for building permits for construction, capital repairs, reconstruction and restoration of residential buildings with the total floor space of 175 thousand square meters or by 65 building permits less and by 47 thousand smaller space than in the 1st quarter of 2020, including 563 building permits issued for new construction with the intended floor space of 130 thousand square meters (by 31 building permits more and by 27 thousand square meters less intended floor space than a year earlier). 456 building permits have been issued for the start for construction of new one-dwelling buildings (intended floor space - 91 thousand square meters).

For the start of construction, capital repairs, reconstruction and restoration of non-residential buildings, 321 building permits were issued for the total floor space of 229 thousand. square meters (by 60 building permits less and by 41 thousand square meters less intended floor space than in the 1st quarter of 2020), including for new construction - 229 building permits for the intended floor space of 128 thousand square meters. 56 building permits were issued for the start of construction, capital repairs, reconstruction and restoration of non-residential buildings of industrial production buildings and warehouses for the total floor space of​ 96 thousand square meters, of which 36 building permits - for new buildings with a total floor space of​ 60 thousand square meters.

Methodological explanations

¹ Own account construction works, including those performed abroad.

² Since the 4th quarter of 2014, the term granted permits in construction statistics characterises construction permit records confirming that conditions for commencement of construction work have been met.

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More information on data:
Industrial and Construction Statistics Section
Madara Liepiņa
E-pasts: Madara.Liepina@csb.gov.lv
Phone: +371 67366953