Why did the economic growth of the construction sector become negative? – Tejarat News

Elham Samadzadeh/ According to Tejarat News, the decrease in construction statistics and the subsequent drop in construction permit issuance statistics have caused the construction sector to fall into the vortex of crisis. According to the available statistics, the construction sector does not have a large share of this year’s budget, and most of the construction budget has gone to other sectors. This trend has become a factor for the tense situation of the building market.

A look at this year’s construction budget

According to the budget bill of 1401, the budget of the construction sector is 251 thousand billion tomans, which has grown by 40% compared to the previous year. But the experience of the past years has shown that the construction budget is generally not allocated and is spent on current expenses. Apart from this, this year due to the increase in the inflation rate as well as the unbridled cost, the approved budget could not properly cover the costs of the construction sector.

Unfortunately, due to the lack of sufficient funds, the construction of roads has been significantly reduced over the past year, although a new airport has not been built this year, which shows the difficult situation in the construction sector.

Investigating the reasons for reducing the construction budget

Unfortunately, in recent years, the construction budget does not match the current costs of the building sector. Therefore, the government intended to attract investors instead of this amount of construction budget, but due to the lack of planning and also disregarding the conditions of investors, not only could it not provide the basis for attracting investment, but on the other hand, because of the rejection and stonewalling for The private sector easily sent investors to neighboring countries.

It is obvious that today, with the increase in the investment of the private sector of Iran in the neighboring countries, the construction sector in Turkey has been accompanied by an upward growth, but in Iran, we have not only been unable to grow, but also experienced a significant decline.

Negative growth made the economy sick

It should be noted that construction covers a significant part of the country’s economy, so the negative economic growth of construction can indicate critical conditions in parallel markets.

In the first step, whenever the building faces a problem, it means that we have faced an increase in unemployment. Also, the growth of domestic gross production is accompanied by a heavy blow.

On the other hand, a significant part of people’s wealth will be accumulated at home or sold in foreign markets. This process can have many negative economic consequences.

Ministers’ disregard for the construction budget

The Minister of Roads and Urban Development has not paid any attention to the condition of the building during the past year and this area entered a critical phase due to the lack of proper planning and carelessness. Some of Ghasemi’s advisors have suggested interesting tricks to make his work process look positive.

In general, it should be kept in mind that the construction budget in the country plays an effective role in creating employment. When this budget is changed, not only will unemployment increase, but economic prosperity will also be jeopardized.

Unfortunately, during the past few years, the residents of Baharestan have not yet realized that housing is not only related to the Ministry of Roads and Urban Development, because this ministry should only be responsible for providing land. On the other hand, other ministries should be more careful about the construction budget and its figure, because this field is directly and indirectly related to the ministries of safety, economy and finance and some other ministries.

Political benefit made the housing knot more blind

Experience has shown that when the government or officials make political use of the housing sector, private sector investors leave the market easily, which is a serious problem in the housing market. The incident that caused the housing market to be in this situation today. For example, the claim of building one million housing units per year by the government is not only considered a baseless claim, but it also drives the private sector housing developers away from the market. Therefore, such policies fuel the housing crisis.

What is certain is that according to the available statistics, 95% of housing in the country is completed and operated by the private sector, so whenever the government claims to build housing, the statistics of housing production will drop in a strange way. This has no effect on the runaway cost and the deepening of the inflationary stagnation.

The government abandoned the housing sector

Currently, the country’s economy is based on the oil economy and the economy of the private sector (housing). Unfortunately, the government plans most of its plans around the oil economy and does not have expert planning for housing. In other words, the entire government designed for the public sector and the private sector has been abandoned. Unfortunately, the private sector does not have a proper base and position in the economy.