The deterioration in construction output growth across emerging markets has been worse than previously expected, particularly in the US and the Middle East. Therefore, the forecast for global construction output growth in 2019 has been revised down to 2.7%, which will be the slowest pace of growth in a decade, according to GlobalData, a leading data and analytics company.
GlobalData’s central forecast sees global construction output growth increase to 3.2% in 2020 and then stabilize 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 stabilization in some of the larger currently-troubled emerging markets.
Danny Richards, Lead Economist at GlobalData, comments: “Some major advanced economies have struggled to generate growth momentum, including the US, the UK and Australia. 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.”
Richards continues: “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 center, which were blamed on Iran.
“The emerging markets of South-East 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.”
Information based on GlobalData’s report: ‘Global Construction Outlook to 2023 – Q3 2019 Update.
Related Stories
Market Data | Nov 2, 2020
Nonresidential construction spending declines further in September
Among the sixteen nonresidential subcategories, thirteen were down on a monthly basis.
Market Data | Nov 2, 2020
A white paper assesses seniors’ access to livable communities
The Joint Center for Housing Studies and AARP’s Public Policy Institute connect livability with income, race, and housing costs.
Market Data | Nov 2, 2020
More contractors report canceled projects than starts, survey finds
Construction employment declined in most metros in latest 12 months.
Multifamily Housing | Oct 30, 2020
The Weekly show: Multifamily security tips, the state of construction industry research, and AGC's market update
BD+C editors speak with experts from AGC, Charles Pankow Foundation, and Silva Consultants on the October 29 episode of "The Weekly." The episode is available for viewing on demand.
Hotel Facilities | Oct 27, 2020
Hotel construction pipeline dips 7% in Q3 2020
Hospitality developers continue to closely monitor the impact the coronavirus will have on travel demand, according to Lodging Econometrics.
Market Data | Oct 22, 2020
Multifamily’s long-term outlook rebounds to pre-covid levels in Q3
Slump was a short one for multifamily market as 3rd quarter proposal activity soars.
Market Data | Oct 21, 2020
Architectural billings slowdown moderated in September
AIA’s ABI score for September was 47.0 compared to 40.0 in August.
Market Data | Oct 21, 2020
Only eight states top February peak construction employment despite gains in 32 states last month
California and Vermont post worst losses since February as Virginia and South Dakota add the most.
Market Data | Oct 20, 2020
AIA releases updated contracts for multi-family residential and prototype residential projects
New resources provide insights into mitigating and managing risk on complex residential design and construction projects.
Market Data | Oct 20, 2020
Construction officials call on Trump and Biden to establish a nationwide vaccine distribution plan to avoid confusion and delays
Officials say nationwide plan should set clear distribution priorities.
