Construction in Eastern Europe to grow 3.6% in 2021

By Mike Hayes04 May 2021

As the threat from Covid-19 recedes, a recovery in the industry is expected in second semester

Putzmeister’s concrete pumping and placing equipment is used in tight construction sites, such as th

The construction industry in Eastern Europe is forecast to grow by 3.6% in 2021, according to a report from Market analyst GlobalData.

While the report, Global Construction Outlook to 2025, Q1 Update, shows a contraction in the region during 2020, due to the Covid-19 pandemic, it averages to only a 1.6% fall in output, which will swiftly be eradicated as the vaccine rollout promotes strengthening construction activity.

The figures for the region are, of course, varied, with Romania and Estonia seeing strong growth throughout 2020, of 10.2% and 6.8% respectively.

At the opposite end of the scale, Hungary and Azerbaijan saw contractions in output of 9.4% and 15.2% respectively.

Although the outlook is positive, the report makes it clear that the forecast figures rely on there being no further significant outbreaks of Covid-19 in the region.

Moustafa Ali, economist at GlobalData, said, “Governments across the region have imposed strict lockdown measures to contain the third wave of infections, which is likely to impact construction markets in Eastern Europe and the spill-over effects from the expected weakening in economic activity across the region, even if the construction industry is exempted from the local lockdowns.

“A significant upside for the industry this year is fiscal support from the EU through the recovery funds, which is expected to support growth in the EU’s Eastern bloc. Additionally, the Turkish Government has pledged significant spending on transport and residential infrastructure projects, which is expected to support the industry and increase growth by 3.8% in 2021. Meanwhile, the Russian construction industry will be supported by the recovery in oil prices, which will bolster government finances to help support investments in transport infrastructure projects. Russia’s construction industry is expected to expand by 2.6% in 2021.”

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Mike Hayes Editor, Construction Europe Tel: +44 (0)1892 786 231 E-mail:
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