While Moldova’s construction market declined in the first half of the current year, following two years of significant growth — 4.8% in 2024 and 32.2% in 2025 — the construction market in the European Union is showing moderate growth. Growth in the construction sector in 2026 is lower than previously forecast: it is now estimated at 2%, compared with the earlier projection of 2.4%. This is still a fairly good result, considering that 2023 and 2024 were years of decline, with construction output falling by more than 3% overall during those two years, while 2025 saw only a modest recovery, with growth of just 0.2%. Moderate growth is also expected in the coming years. Growth is forecast at 2.2% for 2027 and 1.9% for 2028.

Construction producer prices in the European Union are particularly relevant in this regard. Over the past decade (2015–2025), prices for new residential buildings alone increased by 48.2%. Most of this increase occurred in recent years: 5.8% in 2021, 12.2% in 2022, and 6.9% in 2023. In 2024 and 2025, the pace of growth slowed to 2.3% and 1.3%, respectively. At the national level, the fastest price increases over the past decade were recorded in Bulgaria (+166.1%), Hungary (+155.4%), and Romania (+130.7%).

Incidentally, Romania’s construction sector is performing quite well. During the first seven months of the current year, construction activity increased by 11.2%. During the first five months of the year, this indicator had reached 12% compared with the same period last year. Growth in Romania’s construction sector is being driven primarily by public investment. However, specialists warn that the data for the second half of the year could look different, as a number of significant risks to the sector have been identified. These include rising costs, pressure on construction companies’ cash flows, political uncertainty, and difficulties in attracting European funds.

Returning to Romania’s construction growth, it should be noted that infrastructure and the residential sector are the main drivers behind this expansion. The strongest growth was recorded in the residential segment, where the volume of construction work increased by approximately 16%. Infrastructure projects grew by around 14% and continue to account for more than half of the sector’s activity. This category includes road, railway, and hospital projects.

Thus, while Romania is experiencing significant growth and the European Union as a whole is seeing moderate growth, Moldova is facing a clear decline. Once Moldova joins the European Union, its construction market will receive a strong boost. I previously explained, in an article on this subject, what will underpin this process. However, even before then, concrete measures must be taken to halt the decline and ensure the appropriate development of this important segment of the national economy. This is entirely possible, as demonstrated by the examples of 2024 and 2025. What is needed is an analysis of the situation, an assessment of what caused the decline in the first half of the current year, and, of course, the adoption of the necessary decisions. This is not about miracles, but about foresight and pragmatism.

Viorel Godea, General Director of “Lagmar”