July 2013
Featured in this insight: Construction, Financial services, International
Global construction report predicts huge growth: This week saw the publication of “Global Construction 2025” put together by research firms Global Construction Perspectives and Oxford Economics. The report predicts that the construction sector is to grow by over two thirds (70%) in the years leading up to 2025, meaning that the average growth per year will be around 4.3%.
Last year the construction sector amounted for just over a tenth (12.2%) of the world’s Gross Domestic Product (GDP). However, this figure is expected to rise 1.3% by 2025.
The report continued to suggest that by 2025 construction will, on average, account for 10.3% of developed economies’ GDP compared with well over a tenth (16.7%) in emerging markets. Much of the growth is to be account for by China, which is expected to represent a quarter of the global construction output by 2025.
The UK is still predicted to see a respectable average growth of 2.1% per year which is significantly more than that of the rest of Western Europe, with expectations that the construction market will shrink 5% between years 2007 and 2025. This is due to a combination of declining wages and unemployment having a negative impact on house building.
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