Global Construction: Substantial Geographic Differences, High Sensivity to Economic conditions, Permanent Credit Risk
SUBSTANTIAL GEOGRAPHIC DIFFERENCES, HIGH SENSITIVITY TO ECONOMIC CONDITIONS, PERMANENT CREDIT RISK
The global construction sector is a kaleidoscope of diversity with substantial differences between countries and even between the regions of a given country.The sensitivity to changes in economic conditions also varies widely. In general,payment incidents involving actors in the sector are not uncommon. This surveyis intended to enable international trade actors to gain an awareness of the risksand opportunities that characterise this market.
MAJOR DIFFERENCES BETWEEN ADVANCED AND EMERGING COUNTRIES
The generally moderate or stagnant activity of advanced mar-kets fundamentally distinguishes them from emerging marketswhere activity is on the contrary often robust. Although advan-ced countries have been battered by the global economic and financial crisis, some of them still constitute good market outlets in the wake of catastrophes (Japan or New Zealand) orthanks to exploitation of raw materials (Canada, United Statesor Australia. Emerging countries meanwhile suffered few or noill effects from the crisis.
SENSITIVITY TO ECONOMIC CONDITIONS DIFFERING GREATLY DEPENDING ON THE SUB-SECTOR
Public works are less sensitive to economic conditions despite the trend towards fiscal austerity gaining ground in advancedcountries. Business activity has been particularly strong inemerging regions with catching-up necessary in infrastructuredevelopment or to facilitate exploitation of raw materials.