The January 2020 Construction Sector Analysis Report which is closely followed by Turkey Union of Contractors (TMB), the economy environments and the sector was published. In the analysis titled “From Recession Concerns to Fragile Recovery”, data related to the construction industry as well as the global and national economy were comprehensively evaluated.
In the TMB statement regarding the report prepared before the Elazig-based earthquake, it was emphasized that the disaster put forward the need for environmentally sustainable urbanization in a suffering way. In the TMB statement, “This painful incident has reaffirmed the importance of completing and effectively implementing the legal infrastructure that will correctly determine the contracting criteria, conducting building inspections with precision, realizing the urban transformation process with zero tolerance to earthquake without losing time. As these disasters come to the fore, we should not stop talking about events, we should make the vision of earthquake-oriented and environmentally sensitive urbanization sustainable”.
We Have Passed From Recession Concerns To Fragile Recovery
In the January 2020 Construction Sector Analysis Report, the TMB mentioned that the world economy had made an uneasy start in 2020 even though in a more favorable atmosphere than 2019, when recession fears escalated, while vulnerabilities continued despite various optimistic scenarios in developed or developing economies. The report said, “Global warming and the problems caused by the digital revolution, whose results are still unpredictable in real terms, are also prominent risks of the coming period”.
In the report where Turkey’s economy has been completed in the challenging year of 2019 between signals on the return from the bottom to the top and discussions whether “the worst” has been left behind or not, it has been expressed that “In an agenda filled with geopolitical risks and uncertainties, it is facing with a great challenge such as maintaining the growth level at 5% in 2020-2022 period.
Unfinished Projects Should Be Brought Into The Economy
It has been stressed out that the contribution of the construction sector is important for sustaining of the recovery started in Turkish economy and for catching up with the short and medium term goals. In the report, it was emphasized that the need to provide predictability, prioritize projects, clarify the appropriations and make projects with a certain percentage of completion and bring them to the economy as soon as possible by making an investment and appropriation program. In this context, a kind of Medium Term Economic Program was requested for construction and investment activities.
10 Thousand Project Target Exceeded
Turkish contracting companies have undertaken 10 thousand 108 projects with a total amount of 400,4 billion USD in 126 countries from 1972 when they were first opened abroad until the end of 2019. The sector undertook 438 projects abroad in 2019, with a total amount of USD 18 billion. Thus, with the losses due to fluctuations in the world economy and political issues experienced in Turkey region, the annual level of 20 billion US dollars could not be exceeded but the 10 thousand target has been exceeded in terms of the total number of projects. In the sectoral distribution last year, road / tunnel / bridge projects exceeded housing projects (13 percent) with a share of 15,9 percent, attracting attention in terms of increasing the added value of the projects.