Market Research Report
Construction in Turkey - Key Trends and Opportunities to 2024
|Published by||GlobalData||Product code||240899|
|Published||Content info||46 Pages
Delivery time: 1-2 business days
|Construction in Turkey - Key Trends and Opportunities to 2024|
|Published: December 23, 2020||Content info: 46 Pages||
Prior to the Coronavirus (COVID-19) outbreak, Turkey's construction industry was struggling, with output declining by 8.6% in real terms in 2019. The country's economic woes severely impacted construction activity, with the depreciation of the lira and high interest rates pushing up construction costs and the cost of borrowing.
The construction industry was significantly hit by the impact of restrictions imposed amid the COVID-19 outbreak in the first half of 2020. According to the Turkish Statistical Institute (TurkStat), the construction industry contracted by 1.8% year on year (YoY) in real terms in Q1, and 2.3% YoY in Q2 2020. The head of the Turkish Contractors' Association reported that the construction sector is unlikely achieve its target of US$20 billion in 2020 due to the virus outbreak. However, the industry recovered in Q3 2020, with output expanding by 6.4% on a Y-o-Y basis following the lifting of lockdown measures.
The virus outbreak, coupled with worries about the sustainability of foreign debt in the financial sector, severely weakened investors' confidence in the first half of 2020. The Turkish President's unorthodox economic policy has also been a key worry for investors, given rising inflation and the weakness of the lira. However, there are signs that the government is starting to reform its economic policy framework. In November 2020, Finance Minister Berat Albayrak was replaced with the market friendly Lufti Elvan, and the government also appointed a new Central Bank chief, whose first significant policy decision was increasing the bank's key interest rate.
GlobalData expects construction output to grow by 1.5% in 2020, and will retain growth momentum from 2021, posting an average annual growth of 4.6% between 2021-2024.
This report provides detailed market analysis, information, and insights into Turkey's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Turkey. It provides -