The construction market
Sweden
Sweden’s economy continued to develop at a good clip during 2016 and forecasts indicate that 2017 will also deliver good growth figures. Many indicators have continued to improve recently and the general mood is very positive in both the manufacturing and construction industries. Nonetheless, private and public consumption along with housing construction are the primary factors behind the current growth. Although there is a risk of negative effects from rising interest rates and the housing market possibly overheating, neither is expected to materialize in the coming year. After the very strong development in building construction start-ups last year, growth is expected to halt on a high level and instead develop sideways 2017-2018, primarily due to capacity limitations in labor and material supplies. Civil engineering is affected negatively this year by the slowdown in extending fiber lines. Next year civil engineering is expected to accelerate again, largely due to investments in energy such as heating plants and distribution networks as well as the start of construction on the subway extension in Stockholm.
Norway
The Norwegian economy is expected to show a GNP increase by around half a percent in 2016. Recovery will most likely start out slowly. Growth in 2017 is expected to land at around one percent. The oil-related section of the economy affects recovery negatively while mainland investments and private consumption continue to be the primary driving forces. Total building construction investments grew by five percent in 2016 and according to Industrifakta’s assessment a downturn is expected this year, affecting housing and premises, followed by a leveling out in 2018. The civil engineering market grew relatively well in 2016 and the development is expected to continue in 2017.
Finland
The Finnish economy seems to have stabilized around growth of one percent in the coming years, after several years of negative growth. The recovery is driven primarily by household consumption, but as international demand grows and Finland’s competitive capacity is strengthened, exports are expected to accelerate and contribute to growth. Finnish building construction investments were robust in 2016 with an upturn in almost every sector. The opposite development is expected this year, but an upturn can already occur in 2018. Civil engineering construction, which is estimated to have increased somewhat last year, is expected to hover on a higher level than what has been usual during the past five years.
Housing
| 2017 | 2018 | 2019 | |
| Sweden |  |  |  |
| Norway |  | | |
| Finland |  | | |
Forecast for started-up housing investments, new and renovations
Source: Industrifakta
Other building construction
| 2017 | 2018 | 2019 | |
| Sweden | | | |
| Norway | | |  |
| Finland | |  | |
Forecast for started-up other building construction investments, new and renovations (Industry, office/retail etc. and public premises)
Source: Industrifakta
Civil engineering
| 2017 | 2018 | 2019 | |
| Sweden | | | – |
| Norway |  | | – |
| Finland | | | – |
Forecast for civil engineering investments
Source: Industrifakta
 | Worse forecast compared to the previous quarterly report |
 | Better forecast compared to the previous quarterly report |
 | Same forecast compared to the previous quarterly report |
