Canadian Construction Industry 2005 - 2009 Forecast

The strong growth witnessed in the Canadian construction industry in 2004 is expected to continue for at least the next two years, according to figures released by Informetrica Ltd. in November 2004. The Gross Domestic Product (GDP) - which represents the value of all production - of the construction industry grew by 3.5% in 2004. In 2005, GDP growth is expected to reach 4.0%, and 3.0% in 2006. However, starting in 2007 and continuing for several years thereafter, economic growth in the construction industry is expected to cool, with GDP expected to grow by only 1.9% in 2007, 1.4% in 2008, and 1.1% in 2009.

Furthermore, following three consecutive years of the residential construction sector vastly outperforming the non-residential sector, 2005 is expected to witness equally strong growth for both sectors. In 2004, residential construction GDP shot up by 7.8%, while non-residential construction GDP grew at a much weaker pace of 1.3%. In 2005 however, residential GDP is expected to dip slightly to 4.1% growth, while non-residential GDP will strengthen to 4.0% growth. A similar trend is expected in 2006, with growth forecast to average 3.0% for the residential sector and 2.9% for the non-residential sector.

All figures have been prepared by Infometrica Ltd. Full version