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Construction output in Ireland to suffer worst decline in EU

Industry has been harder hit during pandemic than the height of the recession

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'Housing completions for 2021 are projected to be 23,000.' Stock image: Chris Ratcliffe/Bloomberg

'Housing completions for 2021 are projected to be 23,000.' Stock image: Chris Ratcliffe/Bloomberg

'Housing completions for 2021 are projected to be 23,000.' Stock image: Chris Ratcliffe/Bloomberg

Construction output in Ireland is expected to suffer a contraction that would surpass any single-year decline during the financial crisis, according to figures from industry forecaster Euroconstruct.

New figures show output in the sector is expected to fall by 37.7pc this year. According to stockbroker Davy, this would be worse than the most significant fall during the financial crisis of 33.6pc in 2009. Expectations regarding the fall are the worst in Europe, though reflect the UK figures, where a fall in output of 33.4pc is expected.

Annette Hughes, a director at EY-DKM Economic Advisory, which compiled the figures for Ireland and is a member of Euroconstruct, said the drop in output is expected due to the shutdown of construction sites after the onset of the Covid-19 pandemic here. She believes on-site health guidelines may also affect productivity.