The Scandinavian building and construction market has generally been very good in recent years, and Veidekke is expecting that it will grow by a further four to five per cent in 2016 and 2017. "The building and construction market has become an important contributor to our economy through increased housing investments and the large transport projects in Norway and Sweden," says Kristoffer Eide Hoen, Director of Analysis with Veidekke.
The housing market and the public sector are responsible for the strongest growth in Norway
For 2016 and 2017 investment growth of 4% is expected for the building and construction market in Norway, with housing and civil engineering as the primary growth areas.
"Our forecast for housing investments in 2016 has been adjusted upwards from 0 to 5% growth as a result of developments so far this year. A high order intake indicates an adjustment of the investment estimate for 2017 as well, and the forecast has been revised up to 5%. For the autumn of 2016 and throughout 2017, new, large transport projects will contribute to maintain growth in the civil engineering sector at the current high level. We also expect municipalities to contribute with further growth through their water and drainage investments," Hoen says.
Booming economy and broad Swedish upswing
The Swedish building and construction market increased by 8% in 2015, and here Veidekke is expecting continued growth at 9% in 2016 and 3% in 2017.
"The Swedish economy is continuing to expand at a high rate. Strong developments in the labour market are stimulating household growth in income and demand, and also result in substantial revenue for the municipal and state sector. Meanwhile, it is natural that the strong upturn in investments we have seen in recent years - including housing investments - will level off at high level," Hoen continues.
Housing investments provide increase in Denmark
"Denmark has poor economic growth, but a strong labour market. Housing investments are providing an increase in building and construction, while the private sector is continuing to show restraint. This entails that we expect the building and construction market to grow by 3 per cent in 2016 and 4 per cent in 2017," Hoen concludes.
For press photos, see www.flickr.com/photos/veidekke, for more information, contact:
Director Kristoffer Eide Hoen, tel. +47 97 67 54 34, [email protected]
Communications Manager Helge Dieset, tel. +47 90 55 33 22, [email protected]
Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of building and construction contracts, maintains roads and produces asphalt and aggregates. The company's operations are characterised by involvement and local knowledge. Revenue is NOK 24.5 billion (2015), and half of the 7,000 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.
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Source: Veidekke ASA via Globenewswire