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NEW YORK, May 11, 2016 /PRNewswire/ -- Synopsis
The Algerian construction industry will continue to expand in real terms over the forecast period (2016–2020), with investments in infrastructure construction, healthcare, the manufacturing industry, education facilities and housing projects. Forecast-period growth will also be driven by the country's five-year investment program 2015–2019, under which the government aims to develop the country's road, rail and airport infrastructure.
According to the International Monetary Fund (IMF), the government generates two-thirds of its revenue and 95.0% of its total export revenue from oil and natural gas. Since mid-2014, oil prices have fallen by more than 50.0%. Prices declined from US$108.0 per barrel in June 2014 to US$30.0 in December 2015. Despite the decline, the government remained dedicated to investments in priority infrastructure and development projects.
In real terms, the industry's output value rose at a compound annual growth rate (CAGR) of 7.07% during the review period (2011–2015), although it will decelerate to 4.68% over the forecast period, due to a decline in oil prices and government plans to reduce expenditure in 2016 in an attempt to reduce the deficit.
Residential construction was the largest market in the Algerian construction industry during the review period, accounting for 40.6% of its total value in 2015. The market is expected to remain the largest over the forecast period, and will account for 41.0% of the industry's total value in 2020, driven by government policies to support social housing. Affordable housing projects and government plans to develop underprivileged areas will also support this growth. Government subsidies will also help low- and middle-income earners purchase houses....
The Algerian construction industry will continue to expand in real terms over the forecast period (2016–2020), with investments in infrastructure construction, healthcare, the manufacturing industry, education facilities and housing projects. Forecast-period growth will also be driven by the country's five-year investment program 2015–2019, under which the government aims to develop the country's road, rail and airport infrastructure.
According to the International Monetary Fund (IMF), the government generates two-thirds of its revenue and 95.0% of its total export revenue from oil and natural gas. Since mid-2014, oil prices have fallen by more than 50.0%. Prices declined from US$108.0 per barrel in June 2014 to US$30.0 in December 2015. Despite the decline, the government remained dedicated to investments in priority infrastructure and development projects.
In real terms, the industry's output value rose at a compound annual growth rate (CAGR) of 7.07% during the review period (2011–2015), although it will decelerate to 4.68% over the forecast period, due to a decline in oil prices and government plans to reduce expenditure in 2016 in an attempt to reduce the deficit.
Residential construction was the largest market in the Algerian construction industry during the review period, accounting for 40.6% of its total value in 2015. The market is expected to remain the largest over the forecast period, and will account for 41.0% of the industry's total value in 2020, driven by government policies to support social housing. Affordable housing projects and government plans to develop underprivileged areas will also support this growth. Government subsidies will also help low- and middle-income earners purchase houses....