Prediction of the Total Output Value of China’s Construction Industry Based on FGM (1,1) Model

Abstract

The total output value of the construction industry (TOVCI) reflects its own development level to a certain extent. An accurate prediction of the construction industry’s total output value is beneficial to the government’s dynamic regulation. The grey prediction model is widely used for its simple calculation process and high prediction accuracy. Based on the TOVCI of China from 2017 to 2020, this paper constructs an FGM (1,1) model, calculates r by a simulated annealing algorithm, and forecasts the TOVCI of China in next few years. At present, the Particle Swarm Optimization algorithm (PSO) is employed in the calculation of r in the literature. However, the advantage of the simulated annealing algorithm is its powerful global search performance. The prediction results indicate that the TOVCI of China will continue to grow, but the growth rate will slow down. Therefore, the construction industry of China should not simply pursue the high-speed growth of the total output value, but pay more attention to high-quality development, such as technological innovation, energy conservation and environmental protection. Finally, the limitations and future research directions are elucidated.