Demand for building materials is expected to decline throughout 2024 - according to the report by TBC Capital. Accordig to the document, the decline is driven by delays in fiscal budget approvals and disbursements, which have slowed progress on both major infrastructure projects and routine public utility work.
In the private sector, residential and commercial developments have also been hampered by weak purchasing power, rising living costs, and high interest rates. As a result, the construction materials market is projected to shrink by 2.0%-3.0% for the year.
"However, increased public sector spending and an improving economic outlook should drive a recovery, with analysts forecasting growth of 4.5%-5.0% in 2025 and 5.0%-5.5% in 2026. This suggests a challenging 2024 for manufacturers and distributors, but rising demand in the following years should boost revenues", - the document reads.
