Growth in construction activity expected to pick up in 2023

Growth in construction activity is expected to pick up in 2023, despite the specter of recession in many advanced economies. In this context, Oxford Economics has identified six themes that will dominate the narrative of the construction sector over 2023:

Infrastructure investment will drive growth in construction activity. Governments around the world continue to champion major infrastructure projects to both boost their economy’s productive potential and drive the post-Covid economic recovery. This will see civil engineering be the fastest growing sector in the construction market. Tighter monetary policy and recessions will weigh on demand for new buildings. Aggressive policy tightening by central banks over 2022 has lifted borrowing rates and thereby reduced the demand for building construction work, however, a large backlog of work will help to mitigate the impact on building construction work done over 2023. Supply-side constraints will ease,