01 May 2020
Posted in Construction
Russia’s construction industry expected to shrink by 3.8% in 2020 due to COVID-19 related disruptions, says GlobalData
The construction sector has suffered as a result of the COVID-19 outbreak, experiencing severe disruptions on several construction sites, including the Arctic LNG 2 project. As a result, the output in the Russian construction industry is expected to contract by 3.8% in 2020, a significant downward revision from the 2.6% growth expected prior to the virus outbreak, says GlobalData, a leading data and analytics company.
Moustafa Ali, Economist at GlobalData, comments: “The economic conditions have worsened in Russia with market consensus expecting the Russian economy to contract by 4% in 2020. With downside risks remaining, a further downward revision of the forecast is likely if the lockdown measures are extended and the economic situation worsens.”
On 16 April 2020, Russia pledged to support the country’s construction sector while the lockdown measures are in place. The government added that the sector will be one of the key drivers of economic growth once the virus outbreak subsides.”
Ali adds: “The lockdown measures imposed at the end of March 2020 and the low oil prices will weigh down growth in the construction industry, with projects likely to be delayed or cancelled as they become less profitable over the coming months.”