The Dutch construction sector is set to shrink by 2.5% next year, the biggest decline since the financial crisis of 2013, according to ING economists.

Higher interest rates, falling house prices, a shortage of land and the nitrogen crisis are all having an impact on the number of new projects, the economists say. In addition, the boom in demand for energy-saving measures is now over, due to lower energy prices.

According to the bank, property developers, and concrete and bricks manufacturers, are already seeing “a significant drop” in demand. “In the coming quarters, this will be felt throughout the construction chain,” the bank said.

ING still expects the construction sector to grow by 0.5% this year.

Last month, the building sector’s economic institute warned that the construction of new housing was declining more quickly than expected, and is now set to fall by 6.5% this year.

It also said the total construction industry, which includes road building and other infrastructure, would decline by 2% this year and 2.5% in 2024.