Global construction growth set to soar by 2030

The US construction market is predicted to grow faster than that in China over next 15 years, according to a new report on global construction.

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The report, Global Construction 2030, compiled by Global Construction Perspectives and Oxford Economics, sees the slowdown in China leaving the nation's building industry – though still massive – growing at a historic low during 2016.India is predicted to provide a new engine of global growth for construction in emerging markets, while Europe is not expected to recover until 2025 from its 'lost decade' since the financial crisis, although the UK is forecast to become Europe's "stand-out growth market" and become the world's sixth largest construction market by 2030.The report expects construction output to grow by 85 per cent to $15.5 trillion worldwide by 2030, with China, the US and India and accounting for 57 per cent of all global growth.Average global construction growth of 3.9 per cent a year to 2030 is predicted to outstrip GDP growth by more than one percentage point, driven by developed countries recovering from economic instability and emerging countries continuing to industrialise."China's share of the world construction market will increase only marginally as growth slows in the world's largest construction market to 2030. In comparison, US construction will grow faster than China over the next 15 years - growing by an average of five percent per annum. Meanwhile, we're due to see a surge in construction rates in India as it overtakes Japan to become world's third largest construction market by 2021," said Graham Robinson, executive director of Global Construction Perspectives.The report said China's construction growth would slow considerably because of the current housing slump. "But its transition to a consumer and services driven economy provides opportunity for growth in new types of construction in healthcare, education and social infrastructure, as well as retail and other consumer end-markets," says the report.Meanwhile the construction market in India is expected to grow at almost twice the pace of China over the next 15 years with the nation's urban population forecast to grow by 165 million by 2030, swelling Delhi's population by 10.4 million people to become the world's second largest city.In the US, the report says construction growth will tilt towards the southern states, reflecting the region's greater catch-up potential and higher population growth."Fed lift-off, expected as early as December, could mean a risk for construction growth in key emerging markets – Brazil, Russia, Turkey and India – that could all suffer from significant short-term reductions in growth for construction, with some of these countries potentially halving growth," says Jeremy Leonard, director of industry services at Oxford Economics.In Europe, the report does not anticipate the bulk of nations' construction industries to recover to pre-crisis levels until 2025, although growth in the UK is forecast to outstrip all others, overtaking Germany to become the largest in Europe."Construction is likely to be one of the most dynamic industrial sectors in the next fifteen years and is utterly crucial to the evolution of prosperous societies around the world. The numbers within this report are huge and that translates as creating vast numbers of new jobs and creating significant wealth for certain countries across the globe," says Fernando A. González, chief executive of global building materials company CEMEX.For more Re:locate news and features on enterprise, click here

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