IHS has lowered the outlook for global construction spending in 2012 to 4.9% in the face of economic difficulties in the US and Eurozone. Concern over sovereign debt is expected to lead to a mild recession in the Eurozone and the US economy continues to fail to gain significant traction.
The outlook through 2015 sees global construction spending increasing at a compound annual growth rate of 4.7%, while the outlook beyond 2015 calls for a return to moderately strong growth, according to the Third Quarter 2011 IHS Global Insight Global Construction Outlook.
The 2012 growth leaders will be Panama, with growth of nearly 13% over 2011 spending levels as expansion of the Panama Canal continues; Japan and New Zealand, as reconstruction from earthquake damage drives spending; China, on the strength of the government’s emphasis on development in interior and western regions; and Saudi Arabia, where increased investments in infrastructure and housing, coupled with higher oil prices will drive spending.
Spain, Portugal, Greece, Ireland and Italy will see contractions in construction spending, as sovereign debt issues will force austerity measures and discourage investment. Canada will also see declines in spending, on cutbacks after the 2012 elections.
For the longer term, in addition to the Panama Canal expansion project, construction of sports venues in Latin America, the Middle East and Europe will have a major impact on the outlook. Upcoming FIFA World Cup Tournaments, Olympic Games and other events will add to the overall construction spending in the UK, Brazil, Russia, Poland and Qatar.
Read the article online at: https://www.worldcement.com/europe-cis/18112011/ihs_lowers_global_construction_spending_outlook_to_4-9_percent/