The global economy in 2006 is expected to match the pace of growth seen in 2005 of around 4.3%. However, global growth is expected to soften somewhat going into 2007 due to a marked slowdown of the US economy. Against that, emerging Asian and Eastern European economies are likely to maintain their positive momentum.

Global construction spending reached $4.6 trillion in 2006, a 4.9% increase over 2005, with slightly more subdued growth rates expected in 2007. The US market still dominates the global scene as the largest national construction market (Figure 1). Japan remains second, in terms of construction spending in 2006, but its growth prospects are relatively poor compared to the rest of Asia, particularly China and India (Figure 2).

Our review of world construction in 2006 and outlook for 2007 concentrates on the five main trading blocks, namely Africa, the Americas, Asia Pacific, Australasia, and Europe and the Middle East.