Construction sector to grow 1.2-3.2% in 2021
Portugal’s construction sector is set to grow between 1.2-3.2% this year thanks to public investment according to the association that represents it.
The president of AICCOPN, Manuel Reis Campos, told the business publication Jornal Económico that the civil engineering and building works segment should have the best performance with an estimated increase of 6% in new projects thanks to public investment.
The reason he is confident is because he believes the Portuguese government will boost spending in public works projects to help kick-start the economy and prevent unemployment.
The forecasts for the evolution of the sector’s construction output for 2021 points to a real growth rate of between 1.2% and 3.2%, in other words, an average growth value of 2.2% according to the latest data released this week by AICCOPN/AECOPS – the Portuguese Association of Civil Construction and Public Works Industrialists.
Manuel Reis Campos says the these forecasts for a rise in construction activity for this year will result from “a differentiated development in accordance to respective market segments”.
“The construction of residential buildings which maintained a significant growth trajectory over the past five years, should stabilise, with a slight reduction of around 1% in 2021,” he says.
“Regarding the construction of non-residential buildings, this segment should see a fall of around 1.1%,” adds the AICCOPN president.
However, the level of construction of private non-residential buildings is likely to see a fall of 3%, being an area which has been most affected by the pandemic, reflecting the slowdown in sectors like tourism and commerce.
“Regarding the building of non-residential public works, an activity which is directly linked to public investment, we estimate a growth of 2%,” said Reis Campos.
The AICCOPN president added that by the same token, the civil engineering works segment should grow 6% in 2021 in what will be 3% more than in 2020.
This is because the government is expected to inject more cash into public project investment which will be as much as 2.9% of annual GDP in 2021 compared to the 2.5% seen in 2020.