According to Timetric’s Construction Risk Index (CRI), the overall level of risk facing the global construction industry eased slightly in 4Q15, with 24 out of 50 countries in the CRI recording improvements in their risk profiles, most notably Poland and the UAE.
Although Sweden remains the lowest risk country in the CRI, concerns increased over market risks that stem from the ongoing rise in property prices and housing debt. The country is, however, one of the worst performers in terms of the change in risk scores in 4Q15.
There are no changes in the top nine or bottom nine positions in the rankings. Greece, Argentina and Venezuela remain the highest risk countries in the CRI, despite changes in the Argentinean government bringing hope of a turnaround.
Economic recession and a worsening fiscal position both contributed to Brazil’s poor performance in the CRI, leading to the country dropping five places in the latest update and being downgraded to ‘C1’.
Based on aggregate risk scores for the major regions, Eastern Europe was the best performer in 4Q15, predominantly reflecting the improvements in Poland and Romania, but remains the highest risk region nonetheless. Asia-Pacific and the Middle East and Africa recorded marginal improvements. Western Europe declined, in part due to trends in Sweden and Finland. Risk in advanced economies picked up marginally, offset by positive changes in emerging markets.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/14122015/construction-risk-for-4q15-178/