The crisis in the construction sector has stopped the overdevelopment in the country, according to Bulgaria's Minister on Regional Development, Rosen Plevneliev.
This year will be difficult for the building sector but there will be growth in the branch in 2012, Regional Development and Public Works Minister Rosen Plevneliev told journalists Tuesday at the opening of the 11th international specialized exhibition Bulgarian Construction Week at the Inter Expo Centre in Sofia.
Plevneliev said that 1270 companies were dropped out of the construction register, but in his words, these were random players. He added that there are 590 newly registered companies, mostly small ones, which are looking for market niches in energy efficiency and quality construction.
The minister presented the latest data by the EU's statistical office Eurostat, according to which Bulgaria ranks 22nd out of the 27 EU member states with its decline by 7.7% in the construction industry.
The biggest drop was registered in Spain - 27%. Portugal, Slovenia and Latvia have also registered bigger decreases than Bulgaria - 13%, 11% and 9%, respectively.
According to the minister, the data is worrying in terms of the volume - the construction in Bulgaria decreased from BGN 21 B in 2008 to BGN 12 B in 2010. However, he noted that the volume was at the expense of the improved quality.
"The numbers are what they are, but there are trends behind them. The quality of provided materials and the technologies are much better. Bulgaria has said goodbye to the fast construction and to the idea that construction is a driver of the economy and the growth," he said.
Plevneliev pointed out BGN 21 B were spent on construction of apartments and office buildings in 2009, but now the growth in the sector comes from infrastructure. /Source: Sofia News Agency/