Improving global macro-economic scenario to drive cement consumption in 2018

Global economies are showing a synchronized recovery in their gross domestic products, with an uptick in the developed economies of the United States and the Eurozone.

The IMF has improved its outlook for economic growth in 2018 to every major region except for Sub-Saharan Africa, where political uncertainty continues to create reserves among investors. Overall, the fund is now expecting a 3.9 percent improvement in the world's gross domestic product. Coupled with an increase in the flow of capital and equity markets, such macro-economic scenario may lead to an increase in investment on the construction market and an increase in cement demand.

However, some volatility should be expected as some unresolved geopolitical questions remain on the table. Tension in the Korean Peninsula, even if it does not result in full-blown war, could affect investor confidence in one of the fastest growing regions in the world, Asia ex-China. At the same time, a harsh stance from the Trump administration on trade, with the introduction of import duties in products such as steel and automobiles could lead to trade conflicts with a dampening effect on international trade. Finally, east-west relations could potentially affect global confidence, and specifically investment in Russia and other countries from the community of independent states.

Read the full article in CemWeek Magazine 43