RIGA, April 18 (Xinhua) -- The Latvian construction industry is expected to double its output over the next seven years, but during the next three years its annual growth potential could come close to 10 percent, Latvian economy minister Arvils Aseradens said Tuesday.
Citing the financial consultancy firm PricewaterhouseCoopers' (PwC) study on global construction growth, the minister said, as he opened the forum Construction Week 2017, that by 2030, construction in the world will have increased by 85 percent.
According to its medium-term strategy, the Latvian construction sector should double its output over the next seven years to 3 billion euros (3.22 billion U.S. dollars), the minister said.
"This is a very ambitious target, but if balanced with export targets...it is definitely achievable," Aseradens said.
Aseradens stressed that boosting productivity was a necessary precondition for the construction sector's long-term growth. At present, productivity in the sector is lower than in the Latvian economy on average, Aseradens said, stressing the need to raise it to achieve critical export targets.
"In the regional perspective, Nordic countries regard us as important providers of construction services, and our ability to compete in these markets will be crucial," the Latvian economy minister said.
He also mentioned other issues that have to be tackled to ensure the construction industry's sustained growth. They include combating black market employment, shortening long chains of subcontractors involved in many development projects, reverse charging of value added tax, and registering all construction projects in a single database.
