Construction in Lithuania - Key Trends and Opportunities (H1 2021)

Construction in Lithuania - Key Trends and Opportunities (H1 2021)

  • May 2021 •
  • 23 pages •
  • Report ID: 6076439 •
  • Format: PDF
Construction in Lithuania - Key Trends and Opportunities (H1 2021)

Summary
The construction industry in Lithuania is expected to grow by 2.9% in real terms in 2021 - up from a marginal decline of 0.7% in 2020. The Lithuanian construction industry was disrupted last year, as output shrunk in the second and third quarters owing to the outbreak of the Coronavirus (COVID-19) pandemic and the subsequent lockdown restrictions imposed to contain it. According to the Official Statistics Portal (OSP) of Lithuania, the industry’s value-add fell by 5.4% year on year (YoY) in Q2 and 4.1% in Q3, before recovering to growth of 1% in Q4 2020. Prior to the COVID-19-induced disruption in the second quarter of 2020, construction had recorded an average growth of 6.3% over the preceding four quarters, while annual average growth during the last three years was 7.6%. The non-residential building segment was the worst-affected segment last year, while residential construction infrastructure segments recorded deceleration, but maintained growth.

To revive the country’s economy after the COVID-19 crisis, in May 2020, the government launched an economic stimulus package worth EUR6.3 billion (US$7.2 billion) - equivalent to 13% of the country’s GDP. The package is a combination of new and stepped-up planned investments in five areas, including infrastructure, climate change and energy; it will be spent over a period of 18 months until December 2021. Of the total, EUR1.9 billion (US$2.2 billion) will be invested on economic infrastructure to develop airports, Free Economic Zones (FEZ), seaport and inland waterways and railway infrastructure, while EUR932 million (US$1.1 billion) will be invested in climate change and energy to develop offshore wind infrastructure, upgrade energy-inefficient buildings and increase electricity generation from LNG. Lithuania is also expected to receive a grant of EUR2.2 billion funds under the European Union’s Recovery and Resilience Facility, and a further EUR6.5 billion under the Cohesion Funds for 2021-2027. These investments will provide some boost to the construction industry’s output this year.

The analyst expects the industry to continue gaining momentum over the remaining part of the forecast period and register an annual average growth of 3.9% between 2022-2025, supported by investments on infrastructure, renewable energy, residential and industrial infrastructure projects. As part of Lithuania’s National Climate and Energy Plan (NECP) for 2021-2030, the government plans to reduce Greenhouse Gas (GHG) emissions by 9%, compared to the 2005 levels, and increase the share of electricity produced from renewable energy sources from 23% in 2020 to 45% in 2030. Of the total, the government aims to produce at least 55% of the total renewable power from wind sources, and 24% from solar sources by 2030. In a positive development, a new package called ‘Green Corridor for Investments’ came into existence in January 2021. It aims to reduce red tape, and attract local and foreign investments in three sectors, including manufacturing. This will boost investor confidence and attract investments in the country’s manufacturing sector, thereby supporting the industrial sector and the construction industry’s output over the medium and long term.

"Construction in Lithuania - Key Trends and Opportunities (H1 2021)" report provides detailed market analysis, information, and insights into the Lithuanian construction industry, including -
- The Lithuanian construction industry’s growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Lithuanian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope
This report provides a comprehensive analysis of the construction industry in Lithuania.

It provides -
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Lithuania, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy
- Identify and evaluate market opportunities using standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
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