Market environment still impacted by COVID-19
The construction sector developed positively in most regions in 2021. COVID-19-related catch-up effects largely led to pleasing growth figures in the market environment.
Of the total European construction volume of EUR 1,740 billion in 2021, around 80% was generated by building construction. The ratio of residential to non-residential building construction remained the same at around 60 to 40 percent. New construction as a share of total building construction continued to lag behind the renovation business in 2021.
According to estimates by the Bureau of Economic Analysis, gross domestic product (GDP) increased by 5.7% in the US (previous year -3.4%). Investments in building construction increased by 10.0% according to figures from the United States Census Bureau. Within building construction, investments in residential construction increased by +22.9%. In contrast, investments in non-residential construction decreased by 4.7% (previous year +1.9%). The healthcare/hospitals and schools/universities segments, which are important for Geberit, developed with +1.6% less positively and with -8.7% substantially weaker, respectively, compared to the previous year (+5.6% and -2.0%, respectively).
In the Far East/Pacific region, economic growth amounted to 6.1% in the reporting year, slightly above the global economic development of 5.7%. With a share of around 40% of global growth, the largest proportion of global economic growth once again originated from the Far East/Pacific region. At 8.0%, China grew slightly above the average of recent years and much stronger than in the previous year (+2.3%), although the construction industry grew less strongly compared to the economy as a whole. There was no growth in Tier-1 and Tier-2 cities; in Tier-3 and Tier-4 cities, the market actually saw a decline and prices dropped.
In the Middle East/Africa region, economic growth in 2021 was 4.4%, well above the average of recent years and considerably above that of the previous year (-3.8%).
(The aforementioned figures covering the world economy and the performance of the Far East/Pacific and Middle East/Africa regions were published in the October 2021 edition of the IMF World Economic Outlook)