Poland’s Construction Industry on its Way to Recovery

Timetric reports the Polish construction industry is expected to grow at an annual rate of 4.17% over the next 5 years driven primarily by infrastructure development.


After a sluggish performance over the past couple of years, the construction industry in Poland is recovering strongly, finds a new report by Timetric’s Construction Intelligence Center (CIC).

Construction activity in Poland was weak during the review period (2011–2015), as a result of a deteriorating business environment, weak economic conditions, currency depreciation and a lack of foreign capital investment. The country’s construction industry posted a compound annual growth rate (CAGR) of -0.12% in real terms during the review period, and output value fell from US$110.3 billion in 2011 to US$109.7 billion in 2015.

However, Timetric expects the industry’s future to be brighter in the next 5 years. In real terms, the Polish construction industry is expected to accelerate at a CAGR of 4.17%. Consequently, the industry’s value is expected to increase from US$109.7 billion in 2015 to US$134.6 billion in 2020, measured at a constant 2010 US dollar exchange rate. The growth will be driven by the government investments in infrastructure, energy and housing projects.

Infrastructure development is forecast to be a crucial driver behind the future construction growth in the country, and is expected to remain the largest market in the industry over the next 5 years. It is expected to post a forecast-period CAGR of 8.25% in nominal terms, to value US$47.3 billion in 2020. The government is increasing its investment in public transport infrastructure through the public-private partnerships to reduce travel times between major cities and boost trade activities.

The energy and utilities market will also continue to expand up until 2020. The market is forecast to record a CAGR of 6.22% in nominal terms, to value 91.7 billion (US$25.6 billion) in 2020, supported by government plans to construct gas pipelines to connect neighboring countries. The government also aims to diversify its energy portfolio from coal and gas to nuclear energy and to build three nuclear power plants by 2030.