According to a new report by Timetric’s Construction Intelligence Centre (CIC), the construction industry in Poland is recovering after a sluggish performance over the past couple of years.
Construction activity in Poland was weak during the review period (2011 – 2015) due to a deteriorating business environment, weak economic conditions, currency depreciation and a lack of foreign capital investment. The country’s construction industry posted a compound annual growth rate of -0.12% in real terms during the review period, and output value fell fromUS$110.3 billion to US$109.7 billion in 2015.
However, Timetric predicts that the industry’s future will be brighter over the next five years. In real terms, the Polish construction industry is expected to accelerate at a CAGR of 4.17%. Consequently, the industry’s value is expected to increase from US$109.7 billion in 2015 to US$134.6 billion in 2020, measured at a constant 2010 US dollar exchange rate. Government investments in infrastructure, energy and housing projects will drive growth.
Infrastructure development is likely to be a key driver behind the future construction growth in the country and is forecast to remain the largest market in the industry over the next five years. It is expected to post a forecast-period CAGR of 8.25% in nominal terms, to value US$47.3 billion in 2020. The government is increasing its investment in public transport infrastructure through the public-private partnerships to reduce travel times between major cities and boost trade activities.
The energy and utilities market will also continue to expand up until 2020. The market is forecast to record a CAGR of 6.22% in nominal terms, to value 91.7 billion (US$25.6 billion) in 2020, supported by government plans to construct gas pipelines to connect neighbouring countries. The government also aims to diversify its energy portfolio from coal and gas to nuclear energy and to build three nuclear power plants by 2030.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/22032016/poland-construction-industry-is-recovering-739/