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Eastern Europe’s construction industry likely to grow 3.6% in 2021

Eastern Europe’s construction industry likely to grow 3.6% in 2021

Mubasher: Eastern Europe’s construction output is expected to increase by 3.6% this year, following a 1.6% decrease in 2020 due to the COVID-19 pandemic and lockdown restrictions, according to GlobalData.

The second half (H2) of 2021 will likely witness a strong economic recovery as lockdown measures might be lifted, with the vaccination rollout programme starting across several European countries.

In Romania and Estonia, the construction industry grew by 10.2% and 6.8%, respectively, in 2020. Meanwhile, the output in Hungary and Azerbaijan declined by 9.4% and 15.2%, respectively.

Moustafa Ali, Economist at GlobalData, said: “A significant upside for the industry this year is fiscal support from the EU through the recovery funds, which is expected to support growth in the EU’s Eastern bloc. Additionally, the Turkish Government has pledged significant spending on transport and residential infrastructure projects, which is expected to support the industry and increase growth by 3.8% in 2021.”

“Meanwhile, the Russian construction industry will be supported by the recovery in oil prices, which will bolster government finances to help support investments in transport infrastructure projects. Russia’s construction industry is expected to expand by 2.6% in 2021." he added

Several markets across Europe managed to avoid a severe outbreak during the first wave of COVID-19, yet the region has seen a large spike in the number of cases over the recent months.