Impact of strongeconomicstrong and financial crisis in the construction.pdfVIP

IMPACT OF ECONOMIC AND FINANCIAL CRISIS IN THE CONSTRUCTION INDUSTRY Professor PhD Tudor NISTORESCU PhD Student Cristina PLOSCARU University of Craiova Abstract: The current financial and economic crisis has affected many sectors, and also the construction sector. The construction market has been and will be an important source of income for the entire Europe, totaling about 1.650 thousand billion euro, which is more than the GDP of Italy. Building no doubt brings significant percentage in the GDP of any European country, which of course is different from country to country. In Western European countries, the residential market is almost 50% from the construction market, while in Eastern European countries the majority is held by the civil and non- residential constructions. In addition, in the West the medium budget per capita spent on construction is 3-4 times higher than that spent in Eastern countries. But, according to previsions in the coming years the countries that will witness a growth, albeit small, will be the Eastern ones. The paper highlights the impact of the economic and financial crisis in the construction industry on a European and national level, as the sustainable constructions that may represent the sector’s future. Key words: construction market, economic crisis, sustainable constructions, residential constructions. Introduction global downturn manifested in the In 2008, the European economy severe contraction of