OUTLOOK
(Source: Umar Mukhtar @ Pexels via futurecio.tech)
ASIAN CONSTRUCTION GROWTH TO SUFFER DRASTIC SLOWDOWN IN 2020
G
rowth of the Asian construction sector is expected to slow drastically in 2020, chiefly due to the COVID-19 pandemic. Throughout the first half of the year, outbreaks in major construction markets across Asia such as China, Indonesia, India and the Philippines have prompted a number of downward revisions to impending growth forecasts, and as a consequence, growth of the region as a whole is expected to slow down as well. Relative to other regions across the world, Asia continues to be the fastest growing construction market in 2020. Real growth for the Asian construction sector is now expected to remain flat at 0.2% y-o-y in 2020, compared to the initial forecast of 5.3% y-o-y back in January. The near-term slump could potentially be followed by a strong pickup in construction activity in the infrastructure sector, especially as pro-infrastructure policies aimed at rejuvenating economic activity are being pursued by some governments in the regions, taking advantage of today’s low interest rate environment. A time lag associated with project implementation will mean that this year’s growth is unlikely to be rescued by these policies, but medium
24 Building & Investment | www.b-i.biz
(Source: archdaily)
