Photo: FreepikThe contribution of the construction industry to Serbia's gross domestic product (GDP) increased from six percent in 2021 to 6.4 percent in 2022, said Minister of Construction Goran Vesić yesterday at the opening of the 47th International Building Trade Fair SEEBBE at the Belgrade Fair, under the slogan "Building Smart".
Vesić said that Serbia has an annual increase in investment works.
"In 2013, the total value of construction works in Serbia was 1.6 billion euros, while in 2022 it amounted to 4.4 billion euros. The period we are in is quite challenging for the construction sector. In almost all European countries, there is a decline in the construction industry. This is something natural because during a crisis, investors are less likely to invest," Vesić said.
As explained, the significance of the construction industry for the Serbian economy is demonstrated by its contribution to GDP, which was six percent in 2021 and 6.4 percent in 2022. In 2013, the construction industry's contribution to GDP was less than three percent, he added.
"We had a decline of about 11 percent in the construction industry last year, and the Government of Serbia analyzed the reasons why this happened, and accordingly, we took certain measures this year to prevent it," the minister said.
He explained that the first reason we have reduced investment activity is the war that is happening.
"That is why we decided that the value of investments funded by Serbia this year should be 3.6 billion euros. We decided to increase investments to compensate for the shortfall that will be in private initiatives and thus maintain the construction industry," Vesić explained.
He cited the lack of workforce as the second reason.
"We are a country that has started to import labor. This is proof that we are becoming a developed country that someone wants to come to work in. The government of Serbia has taken certain measures to liberalize the access of labor to our market. This will enable us to have a larger number of foreign workers this year," the minister said.
He added that another problem is the slowness in issuing building permits in some local municipalities. "I am well aware of the problems that investors face. We have tried to address most of the problems faced by investors through amendments to the Planning and Construction Law, which is in its final stage. We have moved the information on the location as a possibility of issuance by a notary. We have ensured that the conditions of communal houses that are issued during the process of issuing a construction permit are valid until the end of the procedure, which was one of the reasons for the slowdown in the issuance of construction permits," the minister said.
Vesić stated that green certificates for all public buildings and buildings over 10,000 square meters have been introduced, as well as mandatory energy passports for all new buildings.
He also said that investors have been protected from waste transporters who improperly dispose of waste throughout Serbia, and now it is necessary to submit evidence of the movement of waste, which will result in the cancellation of a large number of illegal dumps.
Vesić added that the first part of the Moravski Corridor will be completed this year, and the bypass around Belgrade will be completed in June.
All prominent domestic and foreign construction manufacturers, distributors, and equipment and material traders participate in the 47th International Building Trade Fair. This specialized international event covers various segments of the construction industry, from research and design to the construction and maintenance of buildings in high-rise, low-rise, and hydro-building, to the presentation of the most advanced materials, construction machinery, devices, and tools. The fair runs until April 27.
Source: MGSI
