NEW YORK, Nov. 22, 2016 /PRNewswire/ -- We maintain our tepid growth outlook the South African construction market between 2016 and 2025 as political and economic headwinds take hold. Business confidence in the economy remains low, hampering the outlay of much-need private investment into infrastructure, while budgetary pressures are hindering the government's ability to deploy the capital earmarked for the sector.
Forecast & Industry Developments
- We continue to forecast real growth of 1.6% and 2.1% in 2016 and 2017 respectively as the government struggles to deploy the capital it has earmarked for the sector and investor caution towards the South African economy grows.
- Growth opportunities will primarily stem from upgrades to freight logistics capacity, with commodities exports key to economic growth even in a low price environment; and improvements to utilities infrastructure as power and water shortages persist.
- The real estate market in Gauteng remains central to supporting non-residential building over our 10-year forecast period. Risk/Reward Indices
- South Africa remains in third place out of 18 markets in our Infrastructure Risk/Reward Index for Sub- Saharan Africa, though its overall score has dropped this quarter, to 49.9 from 50.4 previously.
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