Market Research Report
Construction in Czech Republic - Key Trends and Opportunities to 2024
|Published by||GlobalData||Product code||959821|
Delivery time: 1-2 business days
|Construction in Czech Republic - Key Trends and Opportunities to 2024|
|Published: August 7, 2020||Content info:||
Prior to the Coronavirus (COVID-19) outbreak, the Czech construction industry was struggling, with output declining by 2.4% in real terms in 2019, owing to weakness in both buildings and civil engineering works. In December 2019, the country's president Milos Zeman warned about the slow pace of construction in housing and transport infrastructure projects in the country.
The COVID-19 outbreak and associated containment measures have further impacted the industry. According to the Czech Statistical Office (CZSO), the country's seasonally adjusted average construction production index fell by 0.6% year-on-year in the first five months of 2020. Although building construction activities declined during that period, civil engineering works maintained strong growth. The industry's growth will also be affected by the falling business confidence, with the average business confidence index in the construction industry falling from 127.5 in the first half of 2019 to 111.3 in the first half of 2020, according to the CZSO.
The government expects the outbreak of the pandemic to negatively affect the revenues of the municipalities, thereby weighing on their investment activities. To revive the economy by boosting investments and supporting jobs, in July 2020, the Chamber of Deputies, the lower house of the Czech Parliament, approved a proposal to increase the state budget deficit for 2020 to CZK500 billion (US$22.1 billion) - sharply up from the CZK40 billion (US$1.8 billion) previously planned in February 2020. Through this, the government plans to support the municipalities and regions by contributing to the repair of roads and increasing the amount of funds made available for investments by the State Transport Infrastructure Fund. This will provide some boost to the construction industry in the short and medium term.
Reflecting the disruptions caused by the pandemic coupled with the weak outlook for economic growth, GlobalData forecasts the construction industry to contract by 2.2% in 2020. Over the remaining part of the forecast period, output is expected to register an average annual growth rate of 2.4% between 2021-2024
This report provides detailed market analysis, information and insights into the Czech construction industry, including -
This report provides a comprehensive analysis of the construction industry in Czech Republic. It provides -