Construction in Turkey - Key Trends and Opportunities to 2024
Prior to the Coronavirus (COVID-19) outbreak, Turkey's construction industry was struggling, with output declining by 8.6% in real terms in 2019. The country's economic woes have severely impacted construction activity; the depreciation of the lira and high interest rates have pushed up construction costs and the cost of borrowing. With the emergence of the pandemic and measures taken by the government, the construction industry is now set to contract further in 2020.
The Treasury and Finance Ministry reported that Turkey registered a budget deficit of TRY139.1 billion (US$23.2 billion) between January-July 2020. In July 2020, the budget balance saw a deficit of TRY29.7 billion (US$4 billion), compared to a surplus of TRY9.9 billion (US$1.7 billion) in July 2019.
As Turkey's economic outlook worsens and the government's fiscal position weakens due to the virus outbreak, the construction sector is also set to be adversely affected. Infrastructure construction will be particularly affected. Prior to the crisis the government had been financing major infrastructure projects across the country, but it is likely that it may not have the ability to fund large scale infrastructure projects in the medium term.
Reflecting the disruptions caused by the pandemic, coupled with the weak outlook for economic growth, GlobalData forecasts the construction industry to shrink by 2.5% in 2020. The industry will recover, however, posting an average annual growth of 4.5% between 2021-2024
This report provides detailed market analysis, information and insights into the Turkish construction industry, including -
This report provides a comprehensive analysis of the construction industry in Turkey. It provides -