Boston, MA -- (SBWire) -- 11/27/2015 --International sanctions that are weakening the economy, coupled with low oil prices, underline our bearish outlook on the Russian construction sector. We currently forecast Russia's construction industry to contract 2.3% in real terms in 2016 - a mild improvement compared to the deep contraction of 2015 - as a result of low base effects and the adjustment of the economy to the new oil price environment.
Key Trend And Developments
Russia's actions in Ukraine have resulted in international sanctions, some of which target loans from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). These sanctions will continue to have a significant impact on the Russian government's capacity to fund infrastructure projects.
Middle Eastern and Chinese construction companies will increase their market share in Russia's competitive landscape as a result of Western sanctions. Shifting the balance away from European firms will diversify Russia's options for funding and project delivery.
Get More Details on this Report and a Full Table of Contents at Russia Infrastructure Report Q1 2016
Our Country Risk team maintains a bearish outlook on the Russian economy, forecasting GDP growth of only 0.5% in 2016, after an estimated contraction of 4% for 2015. Russia's annexation of Crimea and perceived belligerence towards Ukraine, in addition to falling oil prices, have triggered significant rouble volatility and massive private net capital outflows. The flight of capital, which could have otherwise been deployed to productive investment domestically, has worsened the investment outlook.
We maintain our view political risk will continue to curtail construction industry growth as corruption is endemic and public policy remains opaque, convoluted and subject to frequent change.
The Russia Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Russia Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Russian infrastructure and construction industry.
Key Benefits
-Benchmark BMI's independent infrastructure industry forecasts for Russia to test other views - a key input for successful budgetary and planning in the Russian infrastructure market.
-Target business opportunities and risks in the Russian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Russia.
-Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI?s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
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New Market Report: Russia Infrastructure Report Q1 2016
Fast Market Research announces the availability of the new Business Monitor International report, "Russia Infrastructure Report Q1 2016", on their comprehensive research portal