Money Buzz! Europa

Tag: belgrade

  • Construction output volume decreased by 2.1% in April in Hungary

    Construction output volume decreased by 2.1% in April in Hungary

    The volume of construction output, based on raw data, was 2.1% lower in April 2020 compared to the high base of the previous year in Hungary.

    Output of the two main groups of construction decreased: in the construction of buildings by 1.4%, in civil engineering by 2.8%.

    Based on seasonally and working day adjusted indices construction output lessened by 1.3% compared to the March data.

    The volume of output decreased in both main groups of construction: in the construction of buildings by 1.4% and in civil engineering by 2.8% compared to the high base of last year.

    Out of the divisions of construction, output volume went down by 2.2% in the construction of buildings, by 3.4% in civil engineering while specialised construction activities lessened by 0.8%.

    The volume of new contracts increased by 3.9%, within it the volume of new contracts concluded for the construction of buildings was 4.7% higher, the volume for civil engineering works was 3.2% higher than one year earlier.

  • Serbia: Building permits, decrease of 36.7% in April 2020

    Serbia: Building permits, decrease of 36.7% in April 2020

    In April 2020, 1.016 building permits were issued, presenting the decrease of 36.7% related to April 2019.

    When observing the period from the beginning of the year, the total number of issued permits increased by 4.1% in the first four months of 2020.

    Out of the total number of permits issued in April 2020, 69.1% related to buildings and 30.9% to civil engineering. When referring only to buildings, 62.5% related to residential buildings and 37.5% to non–residential ones, while regarding civil engineering, the largest number related to pipelines, communication and electric power lines (72.0%).

    According to the permits issued in April 2020 in the Republic of Serbia, building of 1 849 dwellings with average area of 70.9 m2 was recorded.

    Out of the total number of dwellings in new residential buildings, 7.2% of dwellings will be built in single-dwelling buildings, with average area of 173.4 m², and 91.5% of dwellings will be in buildings with three and more dwellings, with significantly smaller average area of 60.9 m².

    Anticipated value of works in April 2020 amounted to 68.5% of totally anticipated value of works.

    Observed by areas, the greatest construction activity is expected in Beogradska oblast (26.2%) of totally anticipated value of works, followed by Raška oblast (12,8%), Južnobačka oblast (12.6%), Južnobanatska oblast (7,4%), Sremska oblast (6.6%) and Severnobačka oblast (6.0%), while the shares of other areas range from 0.1 to 5.0%.

  • World Bank sees the deepest recession since the Second World War

    World Bank sees the deepest recession since the Second World War

    According to World Bank forecasts, the global economy will shrink by 5.2% this year. 

    That would represent the deepest recession since the Second World War, with the largest fraction of economies experiencing declines in per capita output since 1870, the World Bank says in its June 2020 Global Economic Prospects.

    Economic activity among advanced economies is anticipated to shrink 7% in 2020 as domestic demand and supply, trade, and finance have been severely disrupted.

    Emerging market and developing economies (EMDEs) are expected to shrink by 2.5% this year, their first contraction as a group in at least sixty years.

    Per capita incomes are expected to decline by 3.6%, which will tip millions of people into extreme poverty this year.

    In CEE, Serbia has the slowest GDP decline this year and Croatia the biggest growth in 2021

    For the Bulgarian economy, the forecast is a decline of 6.2% for 2020 and a recovery next year to a growth of 4.3%. 

    Croatia will suffer a GDP decline of -9.3% in 2020 and a recovery of 5.4% in 2021.

    Hungarian economy will have a decline of -5.0% this year and a rise of 4.5% next year.

    Poland is in a better situation with an economic decline of -4.2% in 2020, but a slower recovery, of just 2.8% in 2021.

    For Romania, GDP will decrease by -5.7% this year and a rise of 5.4% in 2021.

    Serbian GDP will decline by -2.5% in 2020 and a recovery of 4.0% in 2021.

  • Quarterly GDP in Serbia increased by 5%

    Quarterly GDP in Serbia increased by 5%

    The real GDP growth in the first quarter of 2020, compared to the corresponding period of the previous year, amounted 5.0%, latest Statistical Office of the Republic of Serbia data shows.

    According to seasonally adjusted GDP data, gross domestic product decreased by 0.6% in the first quarter of 2020, compared to the previous quarter.

    Observed by activities, in the first quarter of 2020, compared to the same quarter of the previous year, significant real growth in the gross value added was recorded in the section of construction – 19.6%, the section of information and communication – 11.8%, the section of public administration and defence; compulsory social security; education and human health and social work activities – 11.8% and the section of industry and water supply, sewerage, waste management and remediation activities – 4.5%.

    Observed by expenditure aggregates, in the first quarter of 2020, compared to the same quarter of the previous year, real growth was noted as follows:

    • the household final consumption expenditure – 3.2%,
    • the nonprofit institutions serving households (NPISH) final consumption expenditure – 3.4%,
    • the general government final consumption expenditure – 12.0%,
    • gross fixed capital formation – 10.7%,
    • the exports of goods and services – 3.1%,
    • and the import of goods and services – 8.3%.
  • 63% of NEPI Rockcastle shopping centers GLA is currently open

    63% of NEPI Rockcastle shopping centers GLA is currently open

    Over the last few weeks, in the context of easing of restrictions imposed by the coronavirus pandemic, a large proportion of retailers have resumed their operations and 63% of NEPI Rockcastle shopping centers Gross Leasable Area (‘GLA’) is currently open, shows a company report.

    ”As we begin to collect post-reopening operational data, we are confident that our high-quality portfolio, robust balance sheet and strong liquidity together with our unparalleled know-how of the CEE region remain key strengths for weathering this storm well”, said Alex Morar, CEO NEPI Rockcastle.

    Lithuania (reopening of shops: 25 April 2020)

    Restrictions substantially ended, with most shops, including those in malls, opened since 25 April. 83% of the GLA currently trading, with normalised occupancy expected in June 2020, when entertainment and indoor restaurants open.

    The Lithuanian government partially covers tenant payments from the commencement of trading restrictions until end of July 2020, the landlord is expected to provide a discount of 30% to the rental and other obligations for this period, while 20% is covered by the tenant and 50% by the government.

    Footfall in May has already recovered to 50% compared to the same period of previous year and is increasing.

    Poland (reopening of shops: 4 May 2020)

    Restrictions on non-essential stores ended on 4 May. Certain services, including restaurants, cinemas, gym and entertainment facilities, are still restricted, but expected to start trading in June.

    72% GLA is trading and normalised occupancy is expected by 30 June.

    Government announced relief for rent and service charges, subject to a mandatory six-month lease extension plus the period when units were closed.

    Footfall has already recovered to 50% compared to the same period of the previous year and is increasing.

    Serbia (reopening of shops: 8 May 2020)

    Restrictions for smaller shops, including those located in retail parks, ended on 27 April, while other non-essential stores reopened on 8 May.

    Restaurants and entertainment facilities will open later, as government monitors situation.

    35% of GLA open, normalised occupancy estimated by 30 June. There is no specific legislation regulating lease agreements.

    Croatia (reopening of shops: 11 May 2020)

    Restrictions for smaller shops, including those located in retail parks, ended on 27 April, while other non-essential stores reopened on 11 May.

    Restaurants, coffee shops and food courts are open, with social distancing measures which limit their capacity.

    90% of GLA open; entertainment facilities, currently closed, are expected to open by 30 June.

    No specific legislation regulating lease agreements.

    Czech Republic (reopening of shops: 11 May 2020)

    Restrictions on non-essential stores ended on 11 May.

    76% of GLA open; restaurants and entertainment facilities will open by end of May.

    No specific legislation regulating lease agreements adopted, other than forbidding their unilateral termination by the landlord before the end of 2020.

    Romania (reopening of part of the shops: 15 May 2020)

    The Romanian government has announced gradual easing of lockdown measures, with shops having street access and those located in retail parks up to 15,000 sqm of total built area allowed to trade from 15 May.

    Reopening of non-essential shops and entertainment facilities located in larger malls will be implemented at a later stage, not yet communicated (expected reopening by mid June).

    Offices remained fully functional, with work-from-home measures adopted by many companies.

    Legislation proposing deferral of rental obligations to year-end under certain conditions is being considered.

    Bulgaria (reopening of shops: 18 May 2020)

    Restrictions on trading of non-essential shops ended on 18 May.

    72% of GLA open; cinemas and foodcourts are not open, although restaurants can sell take-away food. It is expected that cinemas will open by end of May.

    Offices remained fully functional, with work-from-home measures adopted by many companies.

    No specific legislation regulating lease agreements adopted.

    Hungary (reopening of shops: 18 May 2020)

    Non-essential shops opened on 18 May, with restaurants expected to open by end of June, while entertainment facilities are estimated to open in July.

    72% of GLA currently open. No specific legislation regulating lease agreements adopted.

    Slovakia (reopening of shops: 20 May 2020)

    The Slovakian government ended the trading restrictions for all non-essential shops on 20 May.

    Restaurants and entertainment areas expected to open by end of June. 91% of GLA open.

    Offices remained fully functional, with work-from-home measures adopted by many companies.

    No specific legislation regulating lease agreements adopted, other than forbidding their unilateral termination by the landlord before the end of 2020 if the tenant is in delay with its payment obligations for the period April – June 2020.

  • Serbia: 12.8% increase in issued building permits in Q1 2020

    Serbia: 12.8% increase in issued building permits in Q1 2020

    In March 2020, 1.694 building permits were issued, presenting the increase of 12.8% related to March 2019, latest Statistical Office of the Republic of Serbia data show.

    By types of constructions, in March 2020, 76.4% of building permits related to buildings and 23.6% to civil engineering.

    When referring only to buildings, 63.8% related to residential buildings and 36.2% to non–residential ones, while regarding civil engineering, the largest number related to pipelines, communication and electric power lines (64.8%).  

    According to the permits issued in March 2020 in the Republic of Serbia, building of 2.953 dwellings with average area of 69.4 m2 was recorded. Out of the total number of dwellings in new residential buildings, 6.6% of dwellings will be built in single-dwelling buildings, with average area of 146.5 m², and 92.2% of dwellings will be in buildings with three and more dwellings, with significantly smaller average area of 62.5 m².

    Observed by areas, the greatest construction activity is expected in Beogradska oblast (31.7%) of totally anticipated value of works, followed by Južnobacka oblast (16.5%), Sremska oblast (12.1%), Sumadijska oblast (8.6%), Nisavska oblast (6.9%) and Zlatiborska oblast (6.2%), while the shares of other areas are up to 3.1%.