Construction an Engine of Global Economic Growth in Next Decade, says Global Forecast

• 14 October 2021
• Construction Focus
• 1208 Views

New research has forecasted that the construction sector will be the main engine of global economic growth outpacing manufacturing in the decade to 2030, with output expected to be 35% higher than in the ten years to 2020, reported GCR.

A forecast conducted by Oxford Economics and Marsh McLennan companies Marsh and Guy Carpenter revealed that the annual growth of construction will be at 3.6% between now and 2030, thanks to Pent-up household savings, pandemic stimulus programmes and population growth.

This growth will outmatch the growth in both manufacturing and services, read the report.

The report added extra output of the construction sector in the decade is expected at US$4.5 trillion, giving construction an output worth US$15.2 trillion by 2030 and 13.5% of global GDP.

Among all the countries, China, India, the US, and Indonesia are the major ones, accounting for some 58% of projected global expansion.

Growth in UK infrastructure averaging 3.7% a year will compete with China as UK mega projects begin.

Graham Robinson, global infrastructure lead at Oxford Economics and the report’s lead author, said it was unusual to see construction outstripping growth in both services and manufacturing over a sustained period.

“But it’s not surprising that construction is expected to power the global economy over this next decade, considering the unprecedented nature of stimulus spending on infrastructure by governments and the unleashing of excess household savings in the wake of COVID,” he added.

• Analysis