Mitnija predicts that the construction sector will be unable to avoid economic contraction as a result of the COVID-19 virus pandemic. For this year, the company expects its revenue to be 10 percent lower than in 2019.
Mitnija’s CEO Julius Gendvilis says that restricted economic activities and diminished confidence due to the global pandemic affect many businesses throughout the world, leading to decreasing demand and investments.
“At this point, it is difficult to say how significantly and for how long the pandemic will affect our business. This will depend on the measures taken by the European Union and the Lithuanian government to stimulate the economy and the actions of financial institutions, as well as other businesses and investors. We are successfully building our existing projects and effectively managing related risks, but we are concerned about new orders. We suspect that, due to the lack of confidence in the markets, some of the projects that were planned for this year will be either postponed to next year or will not be developed at all, and that the investments of the Lithuanian government may be delayed.
“I believe it is important to all of us to overcome our fears and doubts, continue our businesses and plan further activities and investments. Of course, people’s health is of the highest priority, and we must act carefully. But it is no less important for all businesses and public authorities to be active, responsible and united,” Mr. Gendvilis said.