“Construction activity in Poland was weak during the review period (2011 – 2015) due to a deteriorating business environment, weak economic conditions, currency depreciation and a lack of foreign capital investment,” the report reads.
It adds that Poland’s construction industry posted compound annual growth of -0.12 per cent in real terms from 2011 to 2015 and output value fell from USD110.3bn to USD109.7bn in 2015.
The industry’s future will be brighter over the next five years, the report suggests.
The domestic construction industry is expected to accelerate at a CAGR of 4.17 per cent, it reads. “Consequently, the industry’s value is expected to increase from USD109.7bn in 2015 to USD134.6bbn in 2020 (measured at a constant 2010 USD exchange rate). Government investments in infrastructure, energy and housing projects will drive growth.”
Infrastructure is likely to be a main engine of future construction growth in Poland. It is forecast to remain the largest market in the industry over the next five years with a CAGR of 8.25 per cent in nominal terms, to a value of USD47.3bn in 2020. The government is increasing its investment in public transport infrastructure through the public-private partnerships to reduce travel times between major cities and boost trade activities.