The "Lithuania Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.
The publisher expects the Lithuanian construction industry to expand by 3.2% in real terms in 2022, following a marginal annual decline of 0.2% in 2021.
The industry's output in 2022 will be driven primarily by government spending on improving the country's transport infrastructure and the continuation of residential projects started in 2021. The industry's output in 2022 is also likely to spurred by falling Coronavirus (COVID-19) cases, coupled with progress in the country's vaccination drive.
This will help the government in relaxing COVID-19-related restrictions in the country and promoting the restart of economic activity in the commercial sector. However, rising materials prices caused by external factors threaten to drive up construction costs to record levels, which may deter investment into new projects throughout 2022.
In addition, a ban on exporting products to Belarus - a major trade partner of Lithuania - as part of a package of sanctions against Russia and its allies, could further weigh on investments in the industry. Moreover, Lithuania's proximity to the Russia-Ukraine conflict is likely to weaken investor confidence in the country over the short and medium term, as further escalation of the conflict could result in Russian forces targeting the Baltic states.
The construction industry is expected to be supported by high levels of public investment in 2022. The government approved the 2022 Budget in December 2021, which includes an expenditure of EUR16.6 billion ($20.2 billion) in 2022, marking a 15.6% growth compared to an expenditure of EUR12.4 billion ($14.2 billion) in 2021. The budget includes an allocation of EUR193.9 million ($235.9 million) for the energy sector, EUR958.6 million ($1.2 billion) for the education sector and EUR3 billion ($3.6 billion) for the healthcare sector.
Between 2023 and 2026, the industry is expected to register an annual average growth of 4.1%, buoyed by investments on infrastructure, renewable energy, and residential projects. According to the energy minister Dainius Kreivys, the country will receive EUR10 billion ($12.2 billion) in green energy investments by 2030, including EUR3.5 billion ($4.3 billion) from the private sector and significant financing from EU funds.
In December 2021, the government announced the proposed Lithuanian National Road Development and Maintenance Strategy up to 2035; it includes a goal of modernizing the country's highways, improving the condition of roads and bridges, continuing gravel road pavement covering an area of over 1,900km, developing bicycle path infrastructure covering an area of over 1,300km and upgrading over 1,700 pedestrian crossings.
Reasons to Buy
Key Topics Covered:
1. Construction Outlook
2. Construction Industry: At-a-Glance
3. Latest News and Developments
4. Project Analytics
5. Construction Market Data
6. Risk Profile
For more information about this report visit https://www.researchandmarkets.com/r/btya0j
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