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Cyprus construction output falls 17 percent

Construction output in Cyprus experienced one of the highest falls in the 27 EU member states during the third quarter of 2011 and prospects for improvements in the short-term are not favourable.

ACCORDING to a Eurostat news release published earlier today construction output in Cyprus during the third quarter fell 16.8% compared with the same period in 2010, following a fall of 3.1% during the second quarter.

This is the third highest fall amongst the 27 EU member states after Slovenia and Ireland, where construction output declines 25.5% and 18.6% respectively. Construction output also fell in Greece during the third quarter, by 8.3%.

Further reading

Eurostat Construction output news release

Readers' comments

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  • Curmudgeon says:

    Best guess is at least 70% of white good and furnishing suppliers are reliant on business from new sales and repeat business from those clients.

    Why, if so many businesses rely on sales (new money) from foreign purchases don’t they thump and shout out as loud as we do against the fraudulent mannerisms of the government, developers, lawyers and banks? After all, it is they that have killed the golden goose.

    I take great delight in pointing out to various Cypriots I meet that the root of the problem is not expats, it’s the practices of their central government and local ministries. What is disturbing, they don’t seem that interested in the cause as it’s not of their doing.

    One businessman in furnishings said his Nicosia and Limassol branches are doing well but his Pafos outlets have practically ceased trading. He is now looking to expand Limassol and dump Pafos.

    From this, I take it the message is getting across to UK buyers – Caveat Emptor!

    Pafos will eventually shut down.

  • @hector – Although construction workers may have every right to strike, it’s difficult to know what good it’s going to do them.

  • Maxwell Hannah says:

    All they have to do is start being honest with the British and other Foreigners etc, give titles with every purchase old and new, stop messing about, stop being dishonest basically, let people start Trusting again, and things will recover here, its time they started to understand that.

    Maxwell

  • hector says:

    And then I see the headline ‘Striking construction workers threaten further action’ on this website.

    It beggars belief.

  • Steve says:

    The knock-on effects stretch far beyond the furnishing and services to new houses. Much of what is available in Cyprus is imported and distributed by agents or by the manufacturer via its Cyprus marketing and sales unit.

    When new item sales fall far enough, and the signs are there already, the agents go into liquidation or the marketing/sales unit is closed and imports stop, including spare parts for items already sold.

    If it’s summer and your air conditioner needs a new mother board, just hope the agent has not gone under. If you have a car problem you may find that you have a 60km round trip for spare parts because your local dealer has closed, or even worse, you find the agent unwilling to sell you spare parts because your local dealer imported your vehicle second hand from Japan and he had been your source of spares. Of course, spares are often available by other means but the price demanded is something else.

  • @Peter – As well as the construction of buildings, this includes civil and industrial construction – roads, bridges, warehouses, offices, shops, etc. All in the supply chain are affected.

  • jon frazer says:

    Whilst figures for output, productivity and GDP must be at best approximations, and allowing that all countries probably use much the same methods, I remain puzzled by this:

    Construction in Cyprus is approximately 20% of total output. So if it falls by 17%, then one might reasonably expect that the economy as a whole shrinks by around 3.5%, and not the small fractions of one percentage point. Especially adding on the associated declines pointed out by Peter (below).

    Stockwatch reports that there is an increase in productivity in banks, public administration, health and education. Well that’s good news!

  • Peter says:

    It’s not just new villas. It’s everything that goes with buying a new home. From the white goods to the tiles for the floor to new beds. It’s about the income that people bring with them, the jobs they create from a gardener to a swimming pool cleaner & chemicals from the local shop. The food they buy and shops they support. The tax they pay directly or indirectly to the Government. It just evaporates and Cyprus is left hoping the Russians will pick up the slack.

    I just cannot see it happening.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

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