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Latvian and Europe construction comparison: stability and reasons of crisis

  • Skribans, Valerijs

Recently construction industry in Latvia has experienced substantial changes. Stabile increase of construction since 2002 has transformed to a boom in 2006-2007. Year 2008 characterizes with continuation of the boom in first half-year and with the rapid downslide in the second half-year. The downslide can cause the protracted recession not only in construction industry, but also in the whole national economy. In the paper Latvian construction industry is comprehensively evaluated and compared with the Baltic States and the European Union. State of dwelling funds, dynamics of construction industry and factors influencing demand, including solvency of population, desires and necessities; factors of commercial and government demand are presented. Industry costs are analyzed separately: natural resources, production of building materials, fixed assets and attraction of money capital, personnel costs. Possibilities to obtain profit while working in construction were analyzed. Basing on the analysis, suggestions for improvements in the industry activities are elaborated.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16370.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:16370
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