The Construction Risk Index edges up for the fourth consecutive quarter
Based on the Q4 2016 update of Timetric’s Construction Risk Index (CRI), risk has edged up globally for the fourth consecutive quarter, with the unweighted global average score rising to 41.93 from 41.79 in Q3 2016.Risk levels have fallen marginally across advanced economies, but have risen in emerging markets, with the score for the latter rising to 49.50 from 49.37 in Q3 2016.
Sweden remains top-ranked, but there has been a slight worsening in its risk profile, as has been the case with Singapore, Australia, the US and Canada. In total, 26 countries have recorded an upturn in risk. Poland was among the worst performers, reflecting the sharp contraction in construction activity owing to the recent hold-up in EU funding. The Czech Republic and Hungary have also suffered a decline in construction output in recent quarters. Saudi Arabia has fallen further in the CRI rankings, with low oil prices continuing to undermine the government’s fiscal position and curtail new investment spending.
A total of 19 countries recorded improvements in their risk profiles in the Q4 2016 update, notably Greece. Although the country remains C2-rated and ranked a lowly 48th, construction output has started to pick up and the economy is set to return to growth in 2017. Another high-risk market, Algeria, has recorded a solid improvement in the Q4 2016 update. Algeria is now a C1-rated market, with recent improvements in the area of dealing with construction permits contributing to a reduction in overall operating risk
The CRI is designed to provide a standardized view of the underlying degree of country-level risk facing the construction sectors in 50 major developed and emerging markets around the world.
The CRI, which is updated on a quarterly basis, provides an analysis of current conditions and a forward-looking assessment of general and specific risks that could prevent projects from being executed, result in major disruptions to projects, or ultimately lead to project failures. The CRI is based on five dimensions of risk, each with varying weights: market risk, operating risk, economic risk, financial risk, political risk.
Global Risk Scores
Note: 100=very high risk; 0=very low risk
About this report
This information is taken from the Timetric report: ‘Construction Risk Index - Q4 2016 Update'.
CIC clients can access the report here: http://www.construction-ic.com/Reports/TableOfContents/construction-risk-index---q4-2016-update
About the Construction Intelligence Center
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Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary.
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Source: Company Press Release