Construction may be the best sector to help rebuild economies devastated by the COVID-19 pandemic.
The past crises have demonstrated that even though households and businesses might be reluctant to invest in uncertain economic times, governments can increase infrastructure investments, especially maintenance projects by hiring a professional civil engineering company because such projects are simpler and more easily approved.
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Because governments can stimulate demand and create jobs, they can also invest in infrastructure. This can help compensate for the low private-sector spending and the absence of infrastructure investment. The government depends on the private sector to provide additional workers and pay their part of the costs in most other areas of the economy.
Construction is a great focus for national economic recovery programs. It is labor-intensive and employs a lot of workers – 7.6 percent of the global workforce. It can absorb workers from other industries quickly, and projects can target areas and towns that are most affected by the post-COVID recession.
Smaller investments in rural and social infrastructure (e.g., waste management, upgrading informal housing) should balance large projects, as these can draw on local resources and businesses.
Construction work has a positive economic ripple-down effect. Large projects can be a boon for local businesses by providing raw materials, transport, food, and other goods.
If they incorporate environmental goals and provide basic services for the poor, the right infrastructure projects can help to support employment and business activity.