The Forecast Of Construction Industry

993 Words Jun 5th, 2016 4 Pages
Forecast of Construction Industry

At the present time, China’s government has focused it policies on projects and reforms, offering China considerable urban infrastructure opportunities. This means that it is expected that China’s expenditures in construction will continue to grow through 2019, powered by an increase in urban population, continued industrialisation, expanding foreign investment and rising personal income levels.
In addition to this, ‘the government’s effort to sustain growth in the manufacturing sector, improve the country’s infrastructure, expand municipal utilities, and balance regional economic disparity will help growth in construction spending’. (Freedonia).
Despite this, it is predicted that China’s further growth may incur a slowdown and could possibly reach ‘historical lows in the short term, with housing construction registering a decline for the first time ever’ (South Morning China Post). Forecasts for the short-to medium-term future of the market remain positive as shown below in the table.

Forecasts for selected indicators in China’s Construction Sector

Long-Term Forecast

Despite China’s immense growth throughout the decades, it is projected that the construction industry will not continue to grow at it’s usual ‘peak’. As stated by ‘Joe Zhou, (head of research in China at JLL real estate consultancy), “China has passed the peak in terms of construction activity, l would say the peak was more lie 2013. Last year (2014), we saw…
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