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Poland Construction Market Report 2022: Industry is Expected to Grow by 2.7% in 2022, Down from the Previous Forecast of 4.2%, Owing to the Russia-Ukraine Crisis - ResearchAndMarkets.com

The "Poland Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.

The Polish construction industry is expected to grow by 2.7% in 2022, down from the previous forecast of 4.2%, owing to the Russia-Ukraine crisis which is likely to weaken investor confidence in the country over the year if the conflict is protracted.

Growth in the fourth quarter of 2021 was supported by the resumption of all energy and transportation infrastructure projects, as well as the effect of 2020's low base. According to Eurostat, the construction industry's value add grew by 5% year on year (YoY) in Q4 2021, following a Y-o-Y growth of 4.1% in Q3 and 3.8% in Q2 2021. Moreover, the country's total investment in fixed capital grew by 7.9% in 2021, up from a decline of 9% in 2020.

Despite a positive outlook in the short term, significant downside risks owing to Poland's proximity to the Russia-Ukraine conflict is expected to weaken investor confidence, leading to a net capital outflow which will dampen investment in the construction industry.

Moreover, this is likely to put downward pressure on the value of the zloty, increasing the cost of imports and debt financing which will further stifle investment in the construction industry. In addition, high inflation, exacerbated by upward pressure on energy and materials due prices the Russia-Ukraine war, will increase construction costs will impact on planned and ongoing construction projects.

However, support will continue to come from government investment. In June 2021, Poland's Deputy Minister for Infrastructure signed a cooperation agreement with the Spanish Minister of Transport, Mobility and Urban Agenda, Jose Luis Abalos, towards the development of a Polish high-speed rail system, as part of the Solidarity Transport Hub, which includes the construction of a 1,800km high-speed rail network and the modernization of 2,400km of rail lines.

The country's construction industry to register an annual average growth of 3.2% in real terms during the period of 2023-2026, supported by government investments in infrastructure and renewable energy projects. Under the Kolej Plus program, the government plans to spend PLN6.6 billion ($1.7 billion) by 2028, under which the country's railway infrastructure will be developed in cities which do not have access to railway transport.

Furthermore, Polska Grupa Energetyczna (PGE) will invest PLN75 billion ($19.8 billion) in renewable energy projects by 2030, which will aid in the development of the country's energy infrastructure. Over the forecast period, financial support will be provided by the European Union's Recovery and Resilience Facility (RRF). In August 2021, the EU announced a plan to provide PLN783.8 billion (US$233.7 billion) in funding to the country under the RRF during the period of 2021-2027.

Scope

  • Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Poland, featuring details of key growth drivers
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline
  • Listings of major projects, in addition to details of leading contractors and consultants

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index

4.2 Commercial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.3 Industrial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.4 Infrastructure Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.5 Energy and Utilities Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.6 Institutional Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.7 Residential Construction

  • Outlook
  • Project analytics
  • Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/1vj685

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