Despite the ongoing uncertainty over the COVID-19 pandemic, growth in global construction output will reach 5.7% in 2021, following the 2.4% drop in 2020. Global construction will continue on a recovery path, following the historic collapse in activity in 2020 amid the severe disruption caused by restrictions imposed to contain the spread of COVID-19. From 2022 to 2025, global output growth is predicted to average 3.7% a year. The forecast for global construction output is predicated on the assumption that governments and public health authorities will not reintroduce strict lockdown policies and that construction sites will be able to continue to operate with minimal disruption.
Many markets have managed to regain growth momentum and have already returned to pre-COVID-19 levels. Out of 65 markets that have produced quarterly data for Q1 2021, 25 had recorded year-on-year (Y-o-Y) growth in that period, including China, France, Italy, India and Saudi Arabia.
With the surge in construction activity, combined with disruptions to supply chains and high shipping costs, prices for construction materials have soared or remain in short supply. Global steel demand for example has been outstripping supply, and there are reports across major markets of shortages of other key materials, such as timber, cement and aggregates.
