Research Briefing | May 2, 2022

China lockdowns and Russia-Ukraine conflict weigh on global construction outlook

Global Construction Research Briefing

Construction activity is expected to grow by 2.2% in 2022 (compared to 2.1% in our January update). The impact of policy stimulus and our database of major projects point to civil engineering being the key growth driver over the near term. Input cost inflation and supply chain disruptions have been amplified by the Russia-Ukraine conflict and the prolonged lockdown in Shanghai. In this update we have expanded our detailed work done coverage to include Bangladesh and Canada.

What you will learn:

  • Residential building construction activity is forecast to grow 1.1% over 2022 to US$3.5tn. Input cost inflation, capacity constraints, Chinese Covid restrictions, and the impact of higher inflation on household incomes are expected to weigh on activity.
  • Non-residential building construction activity is forecast to grow 1.7% over 2022 to US$2.4tn. Activity will be supported by a rebound in construction work on commercial buildings as a return to working in offices and the resumption of international travel lift investment in the sector.
  • Civil engineering construction activity is forecast to grow 3.9% over 2022 to US$2.8tn, supported by a wave of public stimulus. Governments around the world are particularly focused on fast-tracking major transportation projects – as investments in the economy’s productive potential have proven to be key drivers of economic recovery in previous downturns.

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