The Scandinavian markets are boosted by improvements in the global economy in 2014. This will be particularly noticeable in Sweden and Denmark. "We expect annual growth in the building and construction markets in the Scandinavian countries of 2-3%, with the strongest growth potential in Sweden and Denmark," says Rolf Albriktsen, who is Strategy and Market Director of Veidekke.
Normalisation in Norway
"Over the past few quarters, we have seen that Norwegian GDP growth has slowed and the housing market is somewhat more subdued. This means that after a two-year period of strong growth in the Norwegian economy, the trend will be for a more normal market situation. The strong growth has put pressure on capacity in several markets, so a positive interpretation can be put on a period of slowdown," explains Albriktsen.
The labour market is still strong and interest levels are expected to remain low through 2014. This means that households will continue to have good buying power, which will contribute to growth in consumption and a good housing market in 2014. The change in government will not have any notable consequences in the short term, and the public sector is expected to increase investment in line with the plans that have been announced, especially for transport.
The building and construction market is expected to continue to grow in 2014. The strongest growth will be in the construction market, with major transport initiatives and expansion of the power grid as the main driving forces. In building, investment in the residential sector is expected to level off somewhat, but overall will continue to show growth.
Sweden: Good speed into 2014
As expected, GDP growth in the first half of the year in Sweden was very weak, kept down by low demand in the export sector. Improvement is expected in the autumn, in line with global economic trends. The labour market has emerged from recent quarters stronger than anticipated, with a fall in unemployment reinforcing confidence in a solid upturn. The most recent forecasts indicate GDP growth of around 2.5-3% for 2014, with residential and industrial investment as important driving forces. This provides positive expectations for the Swedish building and construction market next year after a downturn in 2013. All sectors are expected to show an upward trend.
Better times ahead in Denmark
Over the last year, house prices in Copenhagen increased by 12%, and Danish consumers' confidence in the economy has increased strongly since March. GDP growth in the second quarter was surprisingly high and the labour market has also shown a positive trend. "We expect investments to be an important part of the Danish growth situation in future, because the present level is so low. Growth in the Danish building and construction market could be the strongest in Scandinavia from as early as 2014, but starting from a low level," concludes Albriktsen.
For more information please contact:
Rolf Albriktsen, Strategy and Market Director, tel 21 05 75 71 / 90 69 11 10, rolf.albriktsen@veidekke.no
Kristoffer Eide Hoen, Consultant, tel 21 05 77 68/ 97 67 54 34, kristoffer.eide.hoen@veidekke.no
Communications Manager Helge Dieset, tel. +47 21 05 77 91 / +47 90 55 33 22, helge.dieset@veidekke.no
Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 20 billion (2012) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.
| Title | File type |
| Economic Activity Report | |
| Rolf Albriktsen |