Global construction industry to grow by 5.7% in 2021
By Andy Brown26 July 2021
Despite the ongoing uncertainty over the Covid-19 pandemic, global construction output will see growth of 5.7% in 2021, according to report from GlobalData.
This predicted growth would be a robust figure, given that the industry saw a 2.4% decline in 2020 and that cases of those infected with Covid-19 is still high around the world.
Danny Richards, lead economist at GlobalData, said, “The forecast for global construction output is predicated on the assumption that governments and public health authorities will not reintroduce strict lockdown policies and that construction sites will be able to continue to operate with minimal disruption.”
Many markets have managed to regain growth momentum and have already returned to pre-Covid-19 levels. Out of 65 markets that have produced quarterly data for the first quarter of 2021, 25 had recorded year-on-year (Y-o-Y) growth in that period, including China, France, Italy, India and Saudi Arabia.
From 2022 to 2025, global output growth is predicted to average 3.7% a year.
Richards added that, “With activity levels trending upwards in the absence of restrictions on site works, there are likely to be record high rates of Y-o-Y growth in major markets in the coming quarters given the comparison to periods last year when construction sites were closed or when activity was severely disrupted.”
The report does acknowledge that, apart from Covid-19, the industry has a number of issues. These include disruptions to supply chains, high prices for construction materials and demand for some materials, such as steel, timber, cement and aggregates, higher than supply.