PUBLISHER: GlobalData | PRODUCT CODE: 1074458
PUBLISHER: GlobalData | PRODUCT CODE: 1074458
GlobalData has revised down its estimated growth of the Philippine construction industry in 2022, with the industry now expected to expand by 16.5% in real terms this year-down from its previous estimate of a 21.8% growth. This downward revision is attributed to rising inflationary pressures, slowing economic growth, and the tightening of monetary policy by the Bangko Sentral ng Pilipinas (BSP). Despite these headwinds, the industry's output in 2022 will be supported by ongoing transport infrastructure and housing projects. According to the Philippine Statistics Authority (PSA), the construction industry's value add grew by 19% year on year (YoY) in Q2 2022, preceded by Y-o-Y growths of 14.7% in Q1 2022 and 18.6% in Q4 2021.
The construction industry is expected to register an annual average growth of 7.3% from 2023 to 2026, supported by government investment on transport, health, education, and energy infrastructure. As per the proposed Budget for the fiscal year (FY) 2023, the government plans to allocate PHP5.3 trillion ($102.1 billion)-which includes PHP710.6 billion ($13.7 billion) for the education sector, PHP1.2 trillion ($23.1 billion) for the infrastructure sector, PHP296.3 billion ($5.7 billion) for the health sector, PHP184.1 billion ($3.6 billion) for agriculture, PHP197 billion ($3.8 billion) to meet societal needs, and PHP451.3 billion ($8.7 billion) to avert the effects of climate change. Of the PHP1.2 trillion ($23.1 billion) allocated for infrastructure development, the Department of Public Works and Highway (DPWH) will receive PHP718.4 billion ($13.8 billion) and the Department of Transportation (DOTr) will receive PHP167.1 billion ($3.2 billion).
The construction industry's growth over the forecast period will also be supported by the Department of Human Settlements and Urban Development's (DHSUD) plan, announced in August 2022, to eliminate the housing backlog in the country.
The report provides detailed market analysis, information and insights into the Philippine construction industry, including -
This report provides a comprehensive analysis of the construction industry in Philippines. It provides -