The volume of construction work in December 2019 rose by 0.2% compared to the previous month and by 8.3% compared to December 2018, shows preliminary data published by the national statistical office (DZS) on Friday.

The volume of construction work on buildings in December 2019 rose by 8.1% while the volume of work on other structures rose by 8.7% in relation to December 2018.

The 8.3% annual increase in the volume of construction work in December is the highest increase in the last three months of 2019. In October the volume of construction work rose by 7% compared to October 2018 and in November it was 6.9% higher.

According to working-day adjusted indices, the volume of construction work in Q4 2019 was 7.4% higher than in the same period of 2018.

Last year the volume of construction work grew the most in Q1, by 13.7% on the year, while in Q2 it slowed down to 6.3% and in Q3 to 5.9%.

Croatian Chamber of Commerce (HGK) analysts say that according to preliminary data, the volume of construction work in 2019 is 8.3% higher than in 2018, which makes 2019 the fourth consecutive year to see an increase in construction activity.

They note, however, that despite continued growth in the last four years, the volume of construction work is still 37.4% lower than in the pre-crisis year 2008.

HGK analysts expect the relatively high and stable increase in the construction activity to continue in 2020 as well, on the back of investments by the private and public sectors, supported by EU funds, and more dynamic housing construction supported by favourable conditions on the labour market, low-interest rates and state subsidies.