Construction market

Sweden

The financial situation in Sweden continued to develop positively during the end of 2021, although material shortages, the continued spread of COVID-19 and rising inflation held back development and contributed to uncertainty. According to current forecasts the GNP will have grown by about 4.4 percent in 2021. This upturn is expected to be followed by weaker growth in 2022. Consumption as well as investments are driving the economy where higher employment and a continued zero interest rate provide a good platform. Total building construction investments in 2021 rose on a broad front with the exception of horizontal development in public building construction. This is expected to level off in 2022 since both housing investments and other building construction are expected to remain on the same level as in 2021. The ongoing uncertainty concerning the supply of cement can create a bumpy market. Civil engineering investments are expected to suffer a slight downturn in 2022 after having grown at a good rate in 2021.

Norway

The Norwegian economy continued to recover in the latter part of 2021. The forecast for its GNP was adjusted in a positive direction and the strong financial growth will probably continue in 2022, since even the unemployment rate is expected to decrease. Consumption is driving growth, particularly in 2022 when household consumption is expected to accelerate. It appears the total volume of building construction investments will decline in 2022 after a broad upturn in 2021. The exception is new construction of apartment buildings where development was negative last year. All in all housing investments are expected to rise in 2022 while other building construction is expected to decline. The need for civil engineering investments continues to be strong and they grew in 2021. In 2022, however, civil engineering investments are expected to show significant growth.

Finland

A quick recovery in employment, which stimulates household consumption, together with the upturn in investments was behind the growth in the Finnish economy in 2021, and this is expected to drive growth in 2022. The GNP forecast was adjusted in a positive direction and now indicates an increase by about 3.5 percent for last year and 3.0 percent for 2022. The increase in total building construction in 2021 was considerable due to industrial investments and growing housing construction. However, a downturn in 2022 may be on the horizon since both housing investments and other building construction is expected to contract. As in 2021 the forecast for 2022 indicates horizontal development in civil engineering construction.

Housing

	2021	2022	2023
Sweden
Norway
Finland

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

Other building construction

	2021	2022	2023
Sweden
Norway
Finland

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

Civil engineering

	2021	2022	2023
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