Clouds on the horizon for construction Made in Poland
Polish construction output is forecast to level off in 2021, and to rebound by more than 7% in 2022. Profit margins will deteriorate and fail to increase further.
Polish construction output is forecast to level off in 2021, and to rebound by more than 7% in 2022. Profit margins will deteriorate and fail to increase further.
ING estimates strong price pressure due to the continued rise in fuel, food and energy. In August, PPI accelerated to 9.5% YoY.
With consumer demand expected to rise, supply will struggle: businesses face rising commodities prices, lack of components and staff shortages.
While private consumption accounts for 58% of GDP, Warsaw’s economic performance depends less on exports than its regional partners.
Unemployment has risen: consumption and investment face a higher level of uncertainty and a decline in capacity utilization induced by lower demand.
While the restrictions were similar to EU partners, the economic damage was much less: great opportunities from infrastructure, logistics and high-tech.
The 2020 recession is due to a fall in consumption representing 58% of GDP. The industry is expected to be driven by housing demand and major infrastructures.
The lack of investment weighs on real prospects and opportunities in the medium to long term, as private investment has been below the EU average for years.