COVID-19 economic shock will cause global construction output to shrink by 1.4% in 2020, says GlobalData

As a result of the severe economic shock caused by the lockdown measures imposed by governments around the world to contain the spread of COVID-19, global construction output is expected to contract by 1.4% in 2020, according to GlobalData, a leading data and analytics company.

Danny Richards, Lead Economist at GlobalData, comments: “Although the construction industry has in some cases been exempt from restrictions on business activity, few major markets will manage to record an increase in construction output in 2020.”

Before the COVID-19 outbreak, the global construction industry had been expected to grow by 3.1%. This was initially revised down to just 0.5% in late March based on a review of the impact of COVID-19 at that point in time. However, in view of the rapidly evolving nature of the pandemic and the more drastic measures being taken to contain the spread, GlobalData has further adjusted the outlook for the 91 countries covered.

Richards continues: “In the short term, there is a high risk of projects in execution being halted because of lockdowns, a lack of materials, and other supply chain disruption. Projects at pre-construction stages will be severely delayed, given likely disruption in processing building permits, tendering, and awarding contracts.”

Based on the latest updates of mega projects being tracked by GlobalData, global construction momentum has slowed considerably – GlobalData’s Global Construction Projects Momentum Index (CPMI) score (adjusted) dropped to 0.39, from 0.46 in Q4 2019. The unadjusted score plummeted to a low of 0.22, reflecting the severity of the impact of the COVID-19 outbreak on construction projects.

Richards adds: “Given the extent to which the crisis intensified across the world in March, with many major markets in effect shutting down, the Global CPMI score dropped into negative territory, falling to -0.05.”

###

For more information

Analysts available for comment.

Please contact the GlobalData Press Office:
EMEA & Americas: +44 (0)207 936 6400
Asia-Pacific: +91 40 6616 6809

Email: pr@globaldata.com

For expert analysis on developments in your industry, please connect with us on:

GlobalData | LinkedIn | Twitter

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors. Q2CON0006.




Review Article Be the first to review this article

Featured Video
Latest Blog Posts
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
The Economy under COVID-19: Notes from the Trenches (40)
Jobs
ROV Pilot II for TechnipFMC at Houston,, Texas
Geographic Information System Analyst II for State of Idaho at Boise, Idaho
GIS Analyst #14713 for State of Missouri at Jefferson City,, Missouri
Mechanical Designer for TechnipFMC at Houston,, Texas
Upcoming Events
BUILDINGSNY -postponed June 17-18, 2020 at Javits Center New York City NY - Jun 17 - 18, 2020
Urban Planning & Architectural Design for Sustainable Development – 5th Edition at Rome,Italy Roma Tre University Rome Italy - Jul 7 - 9, 2020
Cities’ Identity Through Architecture and Arts – 4th Edition at Rome,Italy Rome Italy - Jul 7 - 9, 2020
AEC Next Technology Expo + Conference (NEW DATE), at McCormick Place Chicago IL - Jul 27 - 29, 2020
Kenesto: 30 day trial
Context Capture
CADalog.com - Countless CAD add-ons, plug-ins and more.



© 2020 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise