Page 21 - Eastern Europe Outlook 2020

• ​Real estate and construction
Construction activity remains sluggish but full-year figures for 2019 may end up looking better. However, as the chart clearly shows the sector has been depressed for about two years and while there are some signs of a mild recovery, there is no indication that construction will take off in 2020.
Growth in the construction sector slowed to 0.2% y/y in November from 1% y/y growth month before. It was up by 0.4% y/y in 11M19. Some companies only report construction data at year-end, meaning the monthly figures are likely underreported.
As a result, it is quite possible that a quite strong pick-up in December will be reported (December generates a disproportionately large share of annual output) or that the 2019 monthly figures will end up being revised at some point in 2020, VTB Capital reported. The positive dynamics in the production of construction materials (cement and concrete) over the course of 2019 supports this possibility.
However, construction is expected to improve in 2020, partly driven by the increased spending on the national projects.
21​ EASTERN EUROPE Outlook 2020​ ​ ​www.intellinews.com