Slovak construction sector ends 2024 with a 5% decline despite year-end growth

The Slovak construction industry saw a year-on-year production increase in December 2024, yet the overall annual performance ended with a 5% decline. The sector struggled throughout the year, with all components of domestic construction output recording a downturn, particularly in engineering projects, which saw a double-digit decrease. New construction and repair works also slowed, and despite modest improvements in the final months, the sector failed to recover from the broader downturn.

In December 2024, construction production reached EUR 752.7 million, marking a 4.3% year-on-year increase. However, after seasonal adjustments, production was down 1.2% compared to November. Domestic construction production posted positive results in only three months of 2024, with December being the second-best performing month.

The largest component, new domestic construction, grew by over 12%, marking its best performance of the year. However, domestic repair and maintenance works fell by nearly 15%, continuing to weigh on the sector. Domestic construction accounted for over 90% of total industry performance, with building construction rising for the second consecutive month, up 7.7% in December. Meanwhile, engineering construction, including highway projects, remained weak, with a 2.4% year-on-year drop.

International construction activity saw a 2.9% increase in December, although its share in total sector production fell below 10%.

Full-Year 2024 Construction Performance

For the entire year, Slovak construction output totaled nearly EUR 7.5 billion. While the sector produced higher values in current prices, its real performance declined by 5% when adjusted for inflation. This marked the second consecutive year of contraction, following a 0.2% decline in 2023.

The downturn affected all areas of domestic production, particularly new construction, renovations, and expansions, which declined by over 6%, while repair and maintenance works dropped by nearly 5%. By construction type, building construction fell by more than 2%, while engineering projects saw a sharp 12% drop.

Despite domestic challenges, construction activity abroad improved slightly, recording a 0.9% year-on-year increase. However, this segment still accounted for less than 11% of total Slovak construction output.

While the sector ended the year on a stronger note, sustained declines in domestic infrastructure projects and maintenance work remain key concerns for the industry heading into 2025.

Source: Statistical Office of the SR