22 Apr 2020
Posted in Construction
Eastern European construction output to contract by 1.4% in 2020, says GlobalData
Construction activity across Eastern Europe slowed markedly in 2019 and in 2020 output will be severely impacted by COVID-19 containment measures. Leading data and analytics company GlobalData now expects growth in the region to drop to -1.4% in 2020.
Moustafa Ali, Economist at GlobalData, comments: “The outlook for the Eastern European construction industry is less severe than in Western Europe, as the region has not suffered to the same extent as major markets such as Italy, France and Spain. While the impact of the virus has so far been limited, the health situation is expected to deteriorate in the coming months. The major Eastern European construction markets are set for severe disruption in the first half of 2020.”
The Polish construction sector is expected to suffer disruption as several contractors operating in the country have announced site closures in response to the outbreak. Russian construction output is expected to contract as the virus outbreak coupled with low oil prices will lead to project delays and cancellations in the coming months. Turkey’s construction is set to face disruption in the first half of 2020.
Ali concludes: “Industrial construction has so far been the most impacted sector with several manufacturers including Ford and Honda announcing site closures.”