Construction market

Sweden

The recovery in Sweden’s economy has been surprising and many forecasts have been adjusted upward. Unemployment is expected to continue to rise in 2021, pressure from inflation will probably be weak for several years and therefore the repo rate is expected to remain around zero over the next two to three years. Housing construction is expected to develop horizontally during the period 2021-2022. After the dramatic drop in 2020 private premises are expected to turn during 2021. Public building construction is expected to increase in 2021. The forecast for civil engineering indicates greater investments in 2021 with a particular focus on public spending.

Norway

The Norwegian economy has made a good recovery after falling in the spring and growth forecasts have been adjusted upwards. Recovery has been driven by domestic demand where private consumption has been a particularly strong force. Development on the construction market is somewhat fractured. Housing construction is expected to develop horizontally during the period 2021-2022. Other building construction is expected to decline in 2021. Investments in industrial and commercial premises are expected to contract while public sector construction is expected to grow. The government’s economic policy is expected to continue to be expansive next year and there is room for investments in civil engineering construction, which is expected to continue to grow in 2021.

Finland

Finland’s economy has so far shown strong resistance to the global economic downturn created by the pandemic. Housing construction is expected to develop horizontally during the period 2021-2022. Other building construction is expected to remain unchanged where investments in industry are expected to drop while public sector construction is expected to grow. Civil engineering construction is expected to have had a positive development in 2020 but decline in 2021.

Housing

2020 2021 2022
Sweden
Norway
Finland

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

Other building construction

2020 2021 2022
Sweden
Norway
Finland

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

Civil engineering

2020 2021 2022
Sweden
Norway
Finland

Forecast for civil engineering investments
Source: Navet Analytics

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