Construction Output to Increase in 2022

January 7, 2022 – Ana Custódio

Construction output is forecast at approximately 15.5 to 16 billion euros.

According to the Bank of Portugal’s most recent forecasts, the country’s economy should grow significantly in 2022, with GDP growing by 5.8% year-on-year. The estimate represents an increase in economic activity compared to the last years of 4.8%.

According to AICCOPN’s Construction Sector Conjuncture Analysis for December, following an estimated increase in production of 4.3% in 2021, the forecasts point to further growth, with a real increase in the Sector’s Gross Production Value in 2022 of between 4.0% and 7.0%. This year, the average predicted growth, 5.5%, would contribute significantly to economic growth. In absolute terms, total production should be between 15.5 and 16 billion euros.

After growth of 4.5% in the residential building construction sector in 2021, the real rate of change is estimated to reach between 4.0% and 7.0%, taking into account the current dynamism of housing demand, where transactions increased by 25.4% in number and 33.3% y-o-y in value in the first three quarters of 2021. A favourable environment for this segment is also expected to continue, with the maintenance of the conditions for granting housing loans and an easing of the constraints caused by Covid-19.

Translation: Richard D K Turner

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