Dive Brief:
- The overall level of risk facing the global construction industry in the third quarter of 2015 rose to its highest level in four quarters, according to the latest Timetric Construction Risk Index (CRI).
- Only 15 of 50 countries in the CRI improved their risk profiles, one of which was the U.S., which jumped two places to fourth place, based on its economy and construction industry. The highest risk countries remained as Greece, Argentina and Venezuela.
- Asia-Pacific was the worst performing region on the index, but Eastern Europe remains the highest risk region.
Dive Insight:
This latest update to the CRI reflects a small improvement in the risk profiles of advanced economies, offset by higher risk profiles of emerging countries.
The Middle East and African regions rose to higher risk profiles, which Timetric attributes to low oil prices, which has reduced the amount of money available for infrastructure and construction projects.
Contributing to Asia-Pacific's poor showing on the index, Timetric says, is concern over China's ability to rebalance its economy and still maintain a high rate of growth. Any future slowdown in China's economy, according to Timetric, would impact the world economy.
Timetric calculates its CRI risk profiles based on market, operating, economic, financial and political risks, and analyzes current conditions, as well as future risks, that could affect the successful completion of construction projects.