Construction market

Sweden

Preliminarily Sweden’s GNP increased by 2.7 percent. In 2023 the economy is expected to contract due to the ever rising interest rates, lower consumption and declining investments. New housing production dropped in 2022 and the forecast for 2023 has been adjusted downward significantly. Demand is severely affected by the pressure households are under combined with falling sales prices for homes and rising interest rates. Apartment building construction will likely be hit the hardest in 2023. Other building construction for the private sector increased marginally in 2022, driven by investments in retail space and offices, but a slight decline in building construction volumes is expected in 2023. There was a downturn in public sector investments in 2022 and the economy in 2023 will draw down development but probably only fractionally. Civil engineering investments in 2022 are believed to have been on the same level as 2021. Development was splintered with lower volumes in roads and railroads but substantially higher investments in the energy sector. This year the higher interest rates and prices for materials put a damper on developments and investment volumes are expected to drop slightly.

Norway

The Norwegian economy grew preliminarily by 3.7 percent in 2022 thanks to strong private consumption, a drop in unemployment and rising gross investments. In 2023 GNP is expected to have zero growth, a slight rise in unemployment and no change in gross investments. New housing production was basically unchanged in 2022 but it was uneven, with an increase in apartment building construction and a decrease in single home investments. Both sectors are expected to contract in 2023. Other building construction for the private sector declined in 2022 due to less activity in retail space and offices. However, the forecast points upwards for 2023. Public sector construction dropped dramatically in 2022 but is expected to recover in 2023. Civil engineering is believed to have grown substantially in 2022 and growth may continue in 2023, although to a lesser degree.

Finland

The Finnish economy is expected to have grown by close to 2.0 percent in 2022 but will probably go into a mild recession in 2023. Both private consumption and gross investments are expected to have nearly zero growth. Single home and apartment building construction decreased in 2022 and the negative development will most likely continue in 2023 as a result of rising interest rates and a weak economy. Private and public investments in other building construction dropped significantly. However, retail space and offices in the private sector were the exception and they increased while industrial building construction declined. A downturn is expected across the board for both the private and public sectors in 2023. Civil engineering is expected to have developed sideways in 2022 and the trend will most likely continue in 2023.

Housing

	2023	2024	2025
Sweden
Norway
Finland

Forecast for production-started housing investments, new production and renovations
Source: Navet

Other building construction

	2023	2024	2025
Sweden
Norway
Finland

Forecast for production-started other building construction investments, new production and renovations (Industry, office/retail etc. and public premises)
Source: Navet

Civil engineering

	2023	2024	2025
Sweden
Norway
Finland

Forecast for civil engineering investments
Source: Navet

	Worse forecast compared to the previous quarterly report
	Better forecast compared to the previous quarterly report
	Same forecast compared to the previous quarterly report