Scandinavian construction growth forecast

Norwegian contractor Veidekke has forecast increased growth in Scandinavian construction markets for 2015 and 2016.

The company said Sweden has the region’s highest forecast growth levels of around 5% for 2015 and 4% for 2016. This projected increase is due to a strong housing market in Stockholm and growth in Gothenburg and Malmo, Veidekke said.

According to Veidekke’s report, there had been “a high level of activity” in Norway’s construction market, including investment in the transport sector. The company forecast annual construction growth of 2% for the country in 2015 and 2016.

However, the report also warned there has been a negative impact from reduced activity in the oil industry – which it said had been softened by low Norwegian interest rates and a positive labour market.

In Denmark, the company forecast 2% construction market growth for 2015, with a further 6% increase expected in 2016. It said there had been signs of growth in the Copenhagen region.

Rolf Albriktsen, strategy and market director, said, “The building and construction market has been very good in the past year, and the trend remains positive.

"For 2015 and 2016 we expect an annual volume growth of 3% in the Scandinavian market, and the greatest growth will be in Sweden.”