Global Construction: Growth Slowing and Switching from Housing to Infrastructure Work

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Jan 05, 2022, 06:00 ET

LONDON, Jan. 5, 2022 /PRNewswire/ -- Global Construction Perspectives has today published the latest edition of its annual forecasts for global construction volumes in 112 countries until 2030¹. The key points in the latest report are:

Percentage Change in Construction Volumes 2019 to 2021 -
Constant prices and exchange rates — Percentage Change in Construction Volumes 2019 to 2021 - Constant prices and exchange rates

Forecast Average Annual Growth Rates in 2023-2030 -
Constant prices and exchange rates — Forecast Average Annual Growth Rates in 2023-2030 - Constant prices and exchange rates

Construction output globally is estimated to have rebounded in 2021 (+4.1%) to $13.2 trillion, from a minor downturn in 2020 (-0.1%).
101 of the 112 countries are estimated to have had growth in their construction volumes in 2021, up from 33 in 2020.
53 of the countries whose construction volumes had declined in 2020 did not recoup the shortfall in 2021 (map on left).
In 2022, construction growth globally is expected to slow to around 3.0%, with infrastructure work replacing housing as the strongest sector. Growth rates are forecast to vary from +20% in Panama to -10% in Myanmar.
We expect 27 of the countries to still have a lower volume of construction output in 2022 than in 2019.
Longer term (2023-30) growth in global construction volumes is forecast to average 2.3% per annum, ranging from +10.2% a year in Lebanon, following the collapse there in recent years, to an average 0.5% per annum decline in Japan (map on right).
Bangladesh (+8.0% p.a.) and the Philippines (+7.5% p.a.) are amongst the most attractive construction markets longer term in our view, particularly if as historically their currencies remain strong.
We estimate a global need for an average of 54 million new homes a year, 12.2 million p.a. in China, 11.4 million p.a. in India and between one and two million a year in each of Nigeria, US, Brazil, Indonesia, Pakistan and Bangladesh.

1. www.globalconstruction2030.com for report. Separate forecasts are published for housing, non-housing and infrastructure work for 64 of the 112 countries.

Contact: Dr Mike Betts, Global Construction Perspectives, Mobile +447833431682. E-mail: [email protected].

SOURCE Global Construction Perspectives