ECONOMIC OUTLOOK
Opportunity and risk
Spending will increase +2.3% in 2013 and +4.5%
in 2014 as economic conditions improve. Over
the medium term, growth should average +5.0%
per annum, with office construction yielding the
highest growth rate and institutional structures
the weakest performer.
Since energy is the lifeblood of the Russian
economy, investment here is expected to continue.
Russia plans to implement incentives such as tax
breaks and opening off-shore fields to foreign
investment to draw US$ 500 million into the oil
expect +4.7% annual growth over the next five
years, with the strongest performance coming
from the transportation sector.
Taken together, IHS Global Insight estimates
that Russian construction spending will post
a slight decline in 2013, mostly a function of
faltering residential construction. However, the
medium termwill see strong +4.3% annual growth
over the next five years, led by the non-residential
sector, although housing will see healthy increases
as well.
iC
international
construction
november 2013
20
IHS Global Insight
Recognised as the most consistently accurate
forecasting company in the world, IHS Global
Insight has over 3,800 clients in industry, finance,
and government with revenues in excess of
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500 companies are customers of IHS Global Insight.
■
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in the US on +1 781 301 9044 or at
and gas industry over the next 30 years.
Construction should begin on the South Stream
gas pipeline in 2014. The pipeline will run from
the Black Sea to Bulgaria and then on to central
Europe with a throughput capacity of 63 billion
m
3
per year, with four separate offshore pipeline
strands.
On the whole, infrastructure construction
spending grew +3.5% in 2012, and despite falling
back a bit in 2013, will see renewed expansion at
a +5.9% pace in 2014. Over the medium term,
Outlook for Russian construction sectors
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
2006
Residential
Structures
Infrastructure
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