GlobalData: Global construction output expected to shrink amid Covid-19 crisis
The data and analytics company GlobalData reported that amid the Covid-19 crisis, global construction output is expected to contract by 1.4 % in 2020. “Although the construction industry has in some cases been exempt from restrictions on business activity, few major markets will manage to record an increase in construction output in 2020,” said Danny Richards, lead economist at GlobalData.
Before the Covid-19 outbreak, the global construction industry had been expected to grow by 3.1 % in 2020. This initially was revised down to 0.5 % in late March based on a review of the effects of Covid-19 at that time. However, with the rapidly evolving nature of the pandemic and the drastic measures being taken to contain the spread, GlobalData has further adjusted the outlook for the 91 countries it covers.
“In the short term, there is a high risk of projects in execution being halted because of lockdowns, a lack of materials and other supply chain disruption,” Richards says. “Projects at pre-construction stages will be severely delayed, given likely disruption in processing building permits, tendering and awarding contracts.”