Construction Output in Finland to Return to Growth
Finland’s construction industry is expected to reach a value of US$39.7 billion in 2020, measured at constant 2010 US dollar exchange rates, according to Timetric's Construction Intelligence Center (CIC).
The industry’s value is expected to improve over the forecast period (2016–2020) due to public and private sector investments in infrastructure, energy, and commercial building projects. Population growth and the sustained pace of urbanization are expected to drive the need for new residential units and infrastructure modernization.
In real terms, the industry’s output value is expected to register a compound annual growth rate (CAGR) of 2.71% over the forecast period to 2020, a marked improvement on the CAGR of -2.52% during the review period (2011–2015).
Indeed, construction activity in Finland was weak during the review period, due to depressed economic conditions, reduced government spending and high unemployment rates. According to Statistics Finland, the industry’s seasonally adjusted value add at 2010 prices rose by 1.0%, from EUR9.5 billion (US$12.6 billion) in 2014 to EUR9.6 billion (US$10.7 billion) in 2015. This was preceded by annual contractions of 5.3%, 2.0% and 3.7% in 2012, 2013 and 2014 respectively. During the first half of 2016, the industry’s value add grew by 5.0% compared to the same period in 2015. It increased from EUR4.8 billion (US$5.3 billion) in January–June 2015 to EUR5.0 billion (US$5.6 billion) in January–June 2016.
Over the forecast period, industry growth is expected to be supported by the government’s focus on developing transport infrastructure. Government efforts to balance supply and demand for housing will also drive the demand for the construction of new residential units. A gradual improvement in regional and global economic conditions is also expected to boost investor confidence.
About this report
This information is taken from the Timetric report: ‘Construction in Finland: Key Trends and Opportunities to 2020'.
For more information visit: https://www.timetricreports.com/search/construction/“
CIC clients can access the report here: http://www.construction-ic.com/Reports/TableOfContents/construction-in-finland-key-trends-and-opportunities-to-2020
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Source: Company Press Release