The construction industry in Poland is predicted to grow at a compound annual growth rate (CAGR) of 4.17% in real terms from 2016 to 2020 despite the recent setbacks, says a report by Timetric.

Titled ‘Construction in Poland – Key Trends and Opportunities to 2020‘, the report outlines the importance of infrastructure development in the recovery of Poland’s construction industry. Investments in infrastructure, energy and housing projects are expected to play a crucial role in offsetting the sluggish performance of the recent past.

As part of its infrastructure development, the government will invest in its road network and expand and rehabilitate the existing infrastructure resulting in a travel time reduction by 15% across its major cities. The National Road Construction Program 2014-2023 was introduced in 2023 to focus on the country’s road infrastructure. The programme was launched with an estimated investment of PLN107bn ($28.7bn).

"The transport sector is also expected to receive an investment of PLN500bn ($134bn) by 2020 to enhance and modernise the transport infrastructure."

Roads, railways and airports in Poland will be developed under the government’s Infrastructure and Environment Operational Program 2014-2020. The transport sector is also expected to receive an investment of PLN500bn ($134bn) by 2020 to enhance and modernise the transport infrastructure.

Growth in other sectors such as energy and housing will also contribute to the recovery of the construction industry. To speed the growth of its construction industry, the Polish authorities are also seeking funds from international financial organisations.

According to the Timetric report, growth in the country’s construction industry was hampered by poor business environment, stagnant economic conditions, currency depreciation and low foreign investments. The same factors led to the shrinking of the industry by 0.12% from 2011 to 2015.