Construction growth to outpace GDP this decade

According to PricewaterhouseCoopers (PwC) in the next decade the growth of GDP will be overtaken by global construction. By 2020 there will be a will be a $4.8 trillion increase in output and China and India will account for 38 per cent of this increase. Citing a report sponsored by it PwC said that China’s construction sector has already overtaken the United States and has thus become the biggest construction market in 2010 and by 2020 it will increase its size to more than double ($2.5 trillion) and will account for a fifth of world construction.

PwC said that by 2020 55% of global construction will be handled by emerging markets with rapidly developing populations which will accelerate urbanization and lead to a robust economic growth. At present 46% of global construction is under these markets. Market research firms Global Construction Perspectives and Oxford Economics which conducted this study has forecasted that during the next 10 years $97.7 trillion will be spent on global construction and every year the sector will expand by 5.2 per cent on an average. This they claim will outpace the growth of GDP. At present more than 11 per cent of global GDP is accounted for the global construction sector and the predictions suggest that by 2020 it will become 13.2 per cent of world GDP.