Bulgarian Construction Sector Activity Down by 53% in 4 Years

Business | August 13, 2012, Monday // 18:54|  views

Photo by dariknews.bg

Ivan Boykov, Executive Director of the Bulgarian Construction Chamber, has argued that the sector is experiencing a catastrophe.

"The construction sector has registered a 53% decrease since 2008. This is not a decline, this is a catastrophe," Boykov said Monday in an interview for the Bulgarian National Radio (BNR).

"These figures point to very weak investment activity, to a lack of foreign investment, to a standstill. The majority of our companies work in municipalities, and there you pay taxes and fees, which the municipality then uses to pay for its social activities. So things are moving in a somewhat vicious circle," he commented.

Boykov suggested that the volumes of work and the number of people employed in the sector had plummeted dramatically.

He said that the unemployment rate in the country was 17%, with over 76 000 people out of work.

"In some spheres, these are entire parts of the industry, of the business. Out of a total of 260 000 employees, there are 180 000 or even less now, given that it is the active season. I expect that another 4% of the workers will be laid off," the CEO of the Bulgarian Construction Chamber informed.

He emphasized that it was the state's responsibility to train competent employees during the years spent in high school and in university.

Boykov further noted that the state had to create favorable conditions for a specialization in the sector so as to guarantee high-quality design companies.

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Tags: construction, construction sector, Ivan Boykov, Bulgarian Construction Chamber, layoffs


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