Portugal: the construction sector is forecasted to fall

Portugal: the construction sector is forecasted to fall

Activity in the construction sector in Portugal in the near future could be reduced by 15%, experts of major professional associations of Portugal AECOPS predict. This means that the construction industry is on the verge of collapse, which could lead to unintended consequences for the economy and affect the lives of ordinary Portuguese.

AECOPS experts predict a reduction in the volume of housing construction by 18% in this year, while the volume of construction of civil buildings - by 14%. The lack of orders and credit facilities to finance existing projects adversely affect the construction business and creating new jobs.

The main causes of the crisis are called weak demand, lack of investment, bankruptcy more than 1,000 construction companies and complicated process of obtaining loans because of crisis.

It is curious that the Portuguese realtors do not share the pessimism of experts and believe that although the housing prices fell by 30% in 2012, the property market in Portugal is restored now.