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Construction is a $7,5-trillion industry, accounting for 13,4% of the world’s gross domestic product. The industry is a driver of economic development, providing both private and public infrastructure. However, the recent slump in the global economy - said by many commentators to be the worst since the Great Depression of the 1930s - had a severe impact on the construction sector more so than other sectors of the economy, with developed countries experiencing a $650-billion slump in yearly construction output, while emerging markets simply slowed down from growth rates of as high as 11% a year in 2006 to a modest average of 0,6% in 2009. During the global economic downturn South Africa's construction sector managed, on the whole, to avoid some of the worst effects of the crisis, as a result of the many projects being implemented, including those related to South Africa’s hosting of the 2010 FIFA World Cup. However, the hangover from the World Cup has caused a slump in construction activity and according to ratings firm Fitch this sector will only start to “significantly improve” from 2012 onwards, owing to deferral of government infrastructure spending.
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