UK-based data analytics and consulting company, GlobalData in its latest report revealed that the growth in global construction output will reach 5.7 percent this year despite the 2.4 percent plunge in 2020 due to the COVID-19 pandemic.
GlobalData’s latest ‘Global Construction Outlook to 2025’ report, points out that even though the sector is recovering from the pandemic crisis, the global industry has borne a huge cost in terms of foregone revenue.
The construction industry will remain on a recovery path, following the historic collapse in last year’s activity amid the severe disruption caused by restrictions imposed to curb the spread of the pandemic. From 2022 to 2025, global output growth is predicted to average 3.7 percent a year.
“There is also still great uncertainty over how the COVID-19 crisis will play out, with positive news on the one hand stemming from the successful rollout of vaccines in many markets and concerns on the other hand over the reports of new variants of the virus and challenges in getting vaccines supplies to developing markets. 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 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.
“With activity levels trending upwards in the absence of restrictions in 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,” Mr. Richards said.
When evaluating leading indicators, there are positive signs for the coming quarters such as building permits approvals. However, with the surge in construction activity, combined with disruptions to supply chains and high shipping costs, prices for construction materials have soared or remain in short supply.