Central Europe Construction Market Report 2Q 2023
Poland
Local economic indicators
Real gross domestic product (GDP) growth remained positive in 2022 at 4.9%, well above the negative growth experienced in 2020 at -2%. The International Monetary Fund (IMF) forecasts GDP to grow by a minimum of 0.3% during 2023 before experiencing greater growth in 2024.
The local statistical website reported a peak in inflation in February of this year at 18.4%, causing fears of ongoing struggles. However, steady declines occurred during March (16.1%) and April (14.7%), its lowest rate since August 2022. The IMF has forecast an annual inflation rate of 7%, meaning significant recoveries are expected in the coming months
Construction materials
The industrial price index table reveals that some production prices have decreased in recent months including glass, concrete and lighting equipment.
The Gleeds materials price table below has been updated:
Contracts
The construction sector in Poland is expected to grow during the forecast period, supported by ongoing road and rail infrastructure projects, residential housing and office and warehouse construction.
Market outlook
The general construction confidence indicator for the largest enterprises surveyed shows some improvement in 1Q 2023, with this figure quickly approaching a positive score. The factors most reported to be limiting construction are costs of labour, costs of materials and general economic uncertainty.
As always, Gleeds advises regular project budget updates that take into account recent market pricing and local risk factors which may impact project programmes and costs. Risk analysis studies are recommended to better evaluate and prepare appropriate contingencies for your particular project conditions and risk exposure.
GTC Korona, Krakow / Cracow, Poland — Gleeds provided Project Management, Cost Management, Fit out works supervision, Site Supervision and Assistance related to LEED Certification services.
