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Picture: 123RF/THAMKC
Picture: 123RF/THAMKC

Construction has long been considered a go-to sector to stimulate economic activity after a downturn. In this edition of the Business Day Spotlight, we explore if this is still true after the Covid-19 pandemic, as well as issues driving and stifling it. 

Our host Mudiwa Gavaza is joined by Nicholas Fearnley, head of global construction forecasting at Oxford Economics.

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Fearnley says construction activity is expected to grow by 2.2% in 2022, explaining that the impact of policy stimulus points to civil engineering being the key growth driver over the near term, according to Oxford’s data. 

In addition, input cost inflation and supply chain disruptions have been amplified by the Russia-Ukraine conflict and the prolonged lockdown in Shanghai.

Fearnley details performance of the sector in various parts of the world, factors driving the industry and types of construction projects that are receiving the most investment. 

The discussion focuses on the place of construction in aiding the global economic recovery post the Covid-19 pandemic; the impact of rising inflation and supply chain issues on the sector; the effect of interest rates on building activity; geopolitical tensions; and an outlook for the sector. 

Engage on Twitter at #BDSpotlight

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 Business Day Spotlight is a MultimediaLIVE production.

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