Ireland Infrastructure Construction to Record a CAGR of 1.03% to 2017, Forecasts Timetric02 Apr 2013 • by Natalie Aster
The Irish construction industry declined at a CAGR of -28.25% over the review period (2008–2012). All construction categories registered negative growth, largely as a result of the economic slowdown experienced after the financial crisis and austerity measures implemented by the government.
Residential construction is the largest construction market within the Irish construction industry, accounting for a 34.7% share of the industry’s total output in 2012. However, the residential construction market was also one of the worst performing categories, recording a CAGR of -29.37% during the review period. Depressed economic conditions due to goverment austerity measures are making it difficult for Irish households to repay housing debt. Prospective buyers, especially those looking to get onto the property ladder, are also finding it difficult to secure mortgages without being asked to pay huge deposits.
According to the report “Construction in Ireland – Key Trends and Opportunities to 2017” by Timetric, commercial construction recorded a CAGR of -32.93% during the review period, the largest decline out of all construction markets in Ireland. The Irish retail sector has seen subdued levels of investment since 2008; fear of government spending cuts and tax hikes is discouraging businesses from making large investments. Consumer spending is cautious, owing to high unemployment, low wage growth and a depressed economic outlook.
Construction in Ireland – Key Trends and Opportunities to 2017
Published: March, 2013
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Industrial construction recorded a CAGR of -31.36% during the review period, the second-largest decline out of all the construction markets in Ireland. Uncertainty in the global economy caused exports to decline, which affected the manufacturing industry in particular.
Infrastructure construction is expected to record a CAGR of 1.03% over the forecast period. Factors including a low benchmark interest rate, various transport plans and government initiatives to try and stimulate the economy are expected to encourage growth in the market during this time.
The country’s budget deficit stands above the prescribed limit of 3%, which has forced the government to implement austerity measures including health and education sector cuts. Consequently, the institutional construction market is expected to record a slow CAGR of 0.06% over the forecast period.
More information can be found in the report “Construction in Ireland – Key Trends and Opportunities to 2017” by Timetric.
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