(MENAFNEditorial)
We have further downgraded our construction industry forecast for Russia in 2015 from -5.4% to -7.1% this quarter. This is on the back of a wors e tha n expected industry contraction in 2014 and the increasing impact of international sanctions and falling oil prices on Russia's economy.
Key Trend And Developments
* Developments have prompted our Country Risk team to revise down our GDP growth forecasts for Russia to a 5.2% contraction in 2015. Russia's annexation of Crimea and perceived belligerence towards Ukraine in addition to falling oil prices have triggered significant rouble volatility and massive private net capital outflows. The flight of capital which could have otherwise been deployed to productive investment domestically has worsened the investment outlook.
* Russia's actions in Ukraine have resulted in sanctions from the EU which target loans from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). We expect these sanctions will have a significant impact on the Russian government's capacity to fund infrastructure projects. In fact credit availability has declined as reflected in the 'credit availability' component of Russia's Purchasing Managers Index (PMI).
* The impact of Russia's weakening macroeconomics has started to be felt on infrastructure projects. A metro line connecting central Moscow to the south-west of the city has been put on hold due to a rise in the cost of importing building materials - a result of the drop in the value of the Russian rouble against the US dollar since January 2015. This is in addition to Finnish firm Lemminkainen deciding to withdraw from its role as developer in a proposed 2000 apartment project with Lipsanen & Co Group in Vasily Island St Petersburg in April 2014.
* Further the Russian government cancelled two projects - Taman Port and Lena Bridge - to free resources to fund their investment projects in Crimea's infrastructure. In turn...
Full Report Details at
- http://www.fastmr.com/prod/987574_russia_infrastructure_report.aspx?afid=101
The Russia Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects including transportation and logistics by land sea and air; power plants and utilities and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Russia Infrastructure Report provides industry professionals and strategists sector analysts investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Russian infrastructure and construction industry.
Key Benefits
* Benchmark BMI's independent infrastructure industry forecasts for Russia to test other views - a key input for successful budgetary and planning in the Russian infrastructure market.
* Target business opportunities and risks in the Russian infrastructure sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Russia.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI’s key industry forecasts views and trend analysis covering infrastructure and construction regulatory changes major investments and projects and significant national and multinational company developments. These are broken down into construction (social commercial and residential) transport (roads railways ports airports etc) and energy & utilities (powerplants pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths weaknesses opportunities and threats within the infrastructure and construction sectors and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators supported by explicit assumptions plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads railways airports and ports and the energy and utilities sub-sectors of power plants and transmission grids oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport utilities commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points. These provide indices of highest to lowest appeal to investors with each position explained.
Market Overview
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry including the key financial figures from some of the largest players in the sector.
Company Profiles*
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