29 Apr 2020
Posted in Construction
Turkish construction industry growth forecast revised down as COVID-19 worsens economic outlook
There have been reports of disruption to several construction sites in Turkey, including the US$1.7bn Galataport development, where workers have been protesting following the death of a construction worker who contracted COVID-19. The contractors in charge of the project have agreed to shut down the site until 3rd May following the protests. Disruption in the Turkish construction sector, which accounts for 10% of GDP, comes at a precarious time as the economic outlook in the country worsens, says GlobalData, a leading data and analytics company.
Moustafa Ali, Economist at GlobalData, comments: “The depreciation of the lira, coupled with worsening economic conditions, is expected to severely weaken growth in the Turkish construction sector. If the lira remains weak, the government may delay some of its more ambitious infrastructure projects that had been expected to drive growth in the sector.”
The Turkish President, Tayyip Erdogan, has already ruled out requesting financial assistance from the International Monetary Fund (IMF) in order to ease the country’s financing concerns. As a result, GlobalData has revised down its forecast for the Turkish construction sector, with a contraction of 2.8% expected in 2020. A further downgrade to the forecast is likely if the economic situation continues to deteriorate.