Global construction output growth to decline

GlobalData’s central forecast sees global construction output growth increase to 3.2% in 2020 and then stabilise at 3.4% over the remainder of the forecast period, which runs to 2023. According to the company’s latest report (‘Global Construction Outlook to 2023 – Q3 2019 Update’), this is partly driven by a projected improvement in the global economy in 2020, which in turn relies on improvements in financial market sentiment and stabilisation in some of the larger, currently-troubled emerging markets.

“Some major advanced economies have struggled to generate growth momentum, including the US, the UK, and Australia,” said Danny Richards, Lead Economist at GlobalData. “In China, where the authorities are stepping up investment in infrastructure to prevent a continued slowdown, growth will remain positive, contributing to a slight acceleration in growth in total output in the emerging markets.

“Geopolitical risks are intensifying, which could potentially undermine investor confidence and disrupt capital flows in the early part of the forecast period. Risks to the overall forecast stem primarily from a possible escalation in the trade war between the US and China, as well as inflamed tensions between the US and Iran following the recent drone strikes on Saudi Arabia’s largest oil processing centre, which were blamed on Iran.

“The emerging markets of Southeast Asia will invest heavily in new infrastructure projects, supported by private investment, and this region will be the fastest growing, expanding by 6.4% between 2019 and 2023.”

Read the article online at: https://www.worldcement.com/europe-cis/04102019/global-construction-output-growth-to-decline/