In our Autumn 2022 UK Market Report we summarised a looming recession within the UK with the construction industry playing a critical role in building out recovery. Is this a pattern shared on a global stage, or will we see differences in the worldwide economic outlook?
As reported by the International Monetary Fund, 2023 will see the “weakest growth profile since 2001”, straying “perilously close” to a recession. Events reshaping the global outlook have created economic uncertainty which may significantly impact the construction industry.
In our Global Construction Outlook, we investigate this economic downturn, shining a light on:
Key contributing factors
From over-reliance on Russian gas supplies, soaring food prices, aspirations of net zero carbon by 2050 and labour shortages.
With trends showing diverse geo-economic impact, the UK faces impending recession. Similarly, the US is forecast a “slowcession”, alongside uncertainty within the EU — but bright spots across Latin America and Asia indicate signs of thriving economies.
Impact on the global construction industry
Infrastructure investment is a necessity, signalling a strong pipeline of work. But does this translate to optimism amongst construction professionals? Or is this overshadowed by uncertainty, particularly around where investment efforts will be prioritised?
Construction inflation forecasts
Various factors influence construction inflation forecasts differently across countries, from risk perception and contract market capacity to supply chain appetite. Can we detect patterns and learn from local markets? The Global Construction Outlook provides a construction market overview for over 20 countries.
Resilience is key as we step into an unpredictable 2023. With opportunities to deepen our understanding of local intelligence whilst embracing digitalisation to accelerate the journey, construction resilience will continue.
The built environment is facing uncertainty as we progress into 2023, giving us potential to either strike fortune or face a telling blow. Our Global Construction Outlook takes a deeper dive.
Project Director, UK Insights and Research Lead
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