According to the latest update of Timetric’s Construction Risk Index (CRI), the overall level of risk facing the global construction industry picked up in Q3 2015, rising to its highest level in four quarters. This entirely reflects a worsening risk profile across most emerging markets, which offset a marginal improvement in that for advanced economies.
A total of 15 out of the 50 countries in the CRI recorded improvements in their risk profiles in Q3, notably the US and South Korea, the former posting continued growth in its economy and construction industry, and the latter benefiting from a recent upgrade of its sovereign credit rating. As a result, the US rose by two places to 4th place in the rankings, remaining behind a top three that still comprises Sweden, Switzerland and Singapore, in that order.
There is no change at the bottom of the rankings either, with Greece, Argentina and Venezuela remaining the highest risk countries in the CRI. Malaysia was the worst performer in the Q3 update, with its risk profile deteriorating in the face of a major corruption scandal engulfing the country’s prime minister and a sharp decline in the ringgit.