Construction, Employment, Financial Services, Lithuania, Markets and Companies, Real Estate

International Internet Magazine. Baltic States news & analytics Saturday, 06.06.2020, 23:30

Lithuanian construction sector to shrink 30% in 2020

BC, Vilnius, 21.05.2020.Print version
Lithuanian construction sector participants forecast that the industry will contract by 30% this year, the daily Kauno Diena reported on May 21st, citing the results of a survey carried out by the Lithuanian Builders' Association (LSA), informs LETA/BNS.

"Property developers have started putting new construction projects on hold, and individual private builders are also asking for a halt to all pending works even though they have made advance payments to contractors," LSA President Dalius Gedvilas told the paper.

He estimates that the state budget risks losing 200 million euros in VAT revenue, 40 million in personal income tax revenue and 50 million euros in social security contributions as a result of the forecast contraction in the construction sector. 

The survey found that almost 65% of construction sector companies had furloughed employees because of a lack of work, and nearly 80% of companies working with private customers reported delays in payments for their services.  

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