Covid-19 Executive Briefing
Understanding the economic impact of the Covid-19 pandemic and the implications for the construction sector
- ECONOMIC IMPACT -
Latest update: 6 April 2020
Many economists have cut their GDP forecasts. The 2020 consensus forecast for GDP growth is currently negative and many predict a recession.
Unemployment rates are expected to rise in all major economies. The International Labour Organization estimates 25 million job losses worldwide.
2.4% - 1.5%
The OECD's forecast for global growth in 2020, with some consensus estimates being far lower.
Expected reduction in investments in the commodity-rich exporting nations, according to UNCTAD.
Impact of Covid-19 on asset prices
- SECTOR IMPACT: CONSTRUCTION -
Latest update: 6 April
3.1% -> 0.5%
Q4 2019 forecast
Forecast revision for 2020 global construction output growth
GlobalData predicts that global construction output growth in 2020 will be just 0.5%, a sharp downward revision compared to the Q4 2019 forecast of 3.1%.
Across Western Europe, GlobalData now predicts that construction output will decrease by 1.9% while in North America output is expected to drop by 1.0%. Further downward revisions to these forecasts are likely in the event of prolonged lockdowns or stricter enforcement.
Impact on projects and businesses