Economist: Construction raises problems in other sectors BNN

. In the first quarter 4.2%). The macroeconomic expert Dainis Gašpuitis of SEB banka .

"The boom in this industry will continue to dominate for quite a while," said the surprising pace of growth in construction volumes, up 32 percent year-on-year. The influx of funds and the favorable mood will ensure that while raising costs and financial problems (even serious) for the builders who will auction the items for "silent period" awards. This is unfortunately the paradox of this boom. Similarly, in recent months, sales activity, which is currently posting retail sales growth (+ 6%), has increased. It is likely that a good increase will also be observed in the entertainment, food and recreation, as well as tourism sectors. Consumption is rising and the favorable conditions will remain, but they will be more characteristic of the regional centers ", commented Gbadpuitis.

He notes that the increase in industrial activity has slowed down in This slowdown is affected by the dry weather which has led to a decline in electricity production. "However, growth in manufacturing volumes is slowing down, which is being influenced by the continued weakness of global economic conditions. It's a bit weird, but in the second quarter, there is a decline in activity in the real estate sector. This confirms that the market activation in the bus and in the future will maintain a sharp recovery. The surprises are due to the transit sector, which made a positive contribution in the second quarter, but it is likely that it will be a temporary change in trends. "

The expert also points out that the declines will continue to dominate the financial sector this year.Therefore, domestic consumption, due to the labor market situation, wage growth, will lead economy forward. "For now, the strong performance of construction significantly increases global growth rates and offsets the performance of problem areas. The heating of the sector raises questions as to its durability and the necessary solutions. In other words, it opens up opportunities, creates difficulties for other sectors, which could lead to a more active recruitment of foreign workers or, later, a rapid influx will create new waves of emigration ", continues the economist. The growth rate will be lower because of the base. "The decline is mainly forecast in grain exports and agriculture.Consumption will continue to drive growth, although the situation could be exacerbated and its growth slowed down.At the whole, the economy this year will be a success, and at the same time, the issue of work will require more attention and quicker solutions, as virtually all economies in the region are facing this problem. the economy grew by 4.5% and a similar pace was observed in the first half of the year, but all indications are that we are at the peak of growth. "This year's growth forecast is 3.7%."