Growth in Global Construction to Outpace World GDP Over Next 10 Years
Anew report out by Global Construction Perspectives and Oxford Economics predicts growth in global construction will outpace world GDP growth over the next decade. The main conclusions in the report are:-
*Growth in Asian powerhouses and cyclical rebound in the US to fuel massive growth in world construction over next 10 years.
*Global construction to grow by almost 70% from $7.2 trillion today to $12 trillion by 2020.
*China, US and India generate over half of the $4.8 trilliongrowth.
Construction has never seen such rapid growth above GDP, fuelled by the emerging super powers of China and India and a rebound in US construction", says Graham Robinson, Director, Global Construction Perspectives, an author of the report. The Global Construction 2020 report, a major global study into construction, sponsored by global advisory firm PwC, predicts that global construction will grow by 67% from $7.2 trillion today to $12 trillion by 2020.
The report says a total of $97.7 trillion will be spent on construction globally over the next ten years.Growth in China, India and the US will account for over half of the predicted $4.8 trillion increase in global construction to 2020.China and India will drive growth in emerging markets as rising populations, rapid urbanisation and strong economic growth are key drivers for construction.
China, boosted by stimulus spending, overtook the US in 2010 to become the world’s largest construction market.China’s construction market will more than double in size over the decade to $2.5 trillion by 2020, or 21% of world construction.
"Construction will become one of the exciting global growth industries of the next decade driven by emerging markets and the US rebound" says Dr Neil Blake, Director of Economic Analysis at Oxford Economics. The report predicts that India will overtake Japan to become the world’s third largest construction market by 2018.
The US will register a sharp cyclical rebound in construction with short term double digit growth in both residential and non residential building sectors.
Seven countries – China, US, India, Indonesia, Canada, Australia and Russia account for two thirds of growth in global construction to 2020. "Corporates need to work out how to deploy skills and develop the best alliances to benefit from the exciting growth opportunities that exist", says Jonathan Hook, Global Leader, Engineering and Construction, PwC.