GlobalData, a leading data and analytics company, forecasts that construction output across Eastern Europe will fall by 2% in 2020, a relatively strong performance compared to other regions.
For large parts of Eastern Europe, the virus outbreak was successfully contained in the first half of the year. The containment of the virus meant that governments across the region had the ability to opt against the severe lockdown measures seen in Western Europe. As a result, the economic cost of the outbreak has been less severe for the construction sector and the wider economy.
Moustafa Ali, Economist at GlobalData, comments: “The outlook for construction in Eastern European remains poor, but the region has thus far not suffered to the same extent as major markets in Western Europe, such as Italy, France, and Spain. Construction output continued to grow in the second quarter of 2020 in a number of countries in the region including Romania, where construction output increased by 9%, and was up by 16.2% in the first half of the year.
“The region’s construction industry is expected to pick up in the second half of the year following the relaxation of restrictions. However, with the number of cases spiking across the region, the outlook remains uncertain and downside risks are high.”