Following the global epidemic in 2020, economic activity rebound in 2021, and the construction industry bounced back with an increase in real estate market activity and DIY home improvements. The residential market showed significant promise with a strong increase in approvals for multi-unit housing developments, setting the pace for possibly a more sustained recovery in the local construction industry. Then came the Russian-Ukraine invasion, inflation, and higher lending rates at a global scale, pushing the dollar to new heights. The year 2022 was more of a normalisation period of the highs of 2021 (following the lows of 2020) but with the added pull back of higher inflation, lending rates, record levels of load shedding and weaker economic growth. Predictably, the DIY and real estate markets cooled down. All the attention in 2022 was on the ultimate consequence of government’s lack of investment, as infrastructure literally crumbles around the country, from energy, roads to water. The floods in Kwazulu Natal had a major impact on infrastructure demand in the province, with damages estimated at between R30bn and R50bn. The highlight of 2022 was government’s final recognition of defeat, by opening the investment corridors for the private sector. So, what can we expect for 2023? Global growth is projected to slow to around 3 percent in 2023, with the local economy unlikely to breach a growth rate of 1 percent. Here are a few highlights we expect to have an impact on the construction industry in 2023.
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| PULSE HIGHLIGHTS 2023 | |
