Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Construction industry growth in Angola will remain sluggish until 2020 as budgetary pressures
weigh on the government's ability to finance infrastructure development. Keeping growth in positive
territory over the short term is China's continued involvement in the sector, notably in residential and
industrial construction and airport infrastructure.
Forecast & Industry Developments
? We continue to forecast subdued construction industry growth of 3.3% in real terms between 2016 and
2019 as the weak commodities outlook limits revenues and the government's ability to finance
infrastructure development. The continued support from China in the form of cheap credit lines and the
increasing involvement of Chinese firms in the residential and non-residential building sectors and
transport infrastructure will be crucial in keeping industry growth in positive territory.
? The outlook for the construction industry will improve from 2020, in line with the expected recovery in
Brent Crude oil prices, which will drive further investment into the oil industry and its associated
infrastructure, and relieve budgetary pressures, allowing for government funding to be funnelled into
construction development. Real growth is projected at 6.8% in 2020.
? Over our full 10-year forecast period between 2016 and 2025 the market will record annual average
growth of 5.3% in real terms.