A new report from Timetric’s Construction Intelligence Center has identified four national markets as key growth regions for the construction industry to 2020.
The Global Construction Outlook 2020 Report forecasts that Qatar’s construction industry will continue as one of the fastest growing in the world, due to the number of major development projects planned or underway. However, the sharp decline in oil prices has resulted in a drop in new investment in energy and infrastructure projects.
Nigeria’s construction industry remains optimistic, with the industry’s output value expected to rise, over the forecast period, at an average of 9.5% annually. The government is heavily investing in the rail, road, energy, airport and seaport sectors.
The construction industry in the Philippines is set to expand at an annual rate of 9.2%. The acting president, Benign Aquino, has been eager to invest in infrastructure developments, under the PPP program. With the end of his term in 2016, the next government is expected to follow in his footsteps.
In Indonesia, the government’s focus on infrastructure and energy construction, along with the implementation of the multi-year Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) 2011–2025, and the participation of the private sector have contribute for the healthy outlook of the construction industry in Indonesia. Its output value is expected to rise at an average of 8.1% annually.
In the Americas, the housing expansion in the US will remain as the region’s main growth driver, while infrastructure projects will be at a low.
Latin America’s emerging market will see a slower growth, mainly as a result of the Brazil’s contraction. The Petrobas corruption scandal has disrupted the construction industry and undermined confidence.
Recovering from a period of weakness, Mexico’s industry will be supported by investment and residential projects.
In Asia, the Asia-Pacific will remain as the largest share of the global construction industry, even though the growth pace will slow, due to China’s inertia.
Emerging markets of South-East Asia, supported by private investment, will be eager to invest in new infrastructure projects.
Continuing closing the gap in Japan, India’s industry is expected to grow at an average of 5.6% annually.
In Europe, Western European countries’ construction industry is still recovering, with its output below the pre-crisis highs. On the other hand, the UK will continue to outperform the region, with favorable government policies to stimulate the growth of the residential sector. Investment in infrastructure will also be a positive factor in the construction growth.
Poland is expected to continue to expand quickly, dependent on continued EU assistance.
Russia’s deterioration of the economy and the ongoing conflict in Ukraine will slow the construction growth pace. With the upcoming FIFA World Cup, Russia’s activity is set to be bolstered.
And in the Middle East, the fall in oil prices will put some energy and infrastructure projects in jeopardy as governments in the region face a deterioration in their finances.
For more information and to purchase the full report, visit the Construction Intelligence Center.