Market Research Report
Construction in China - Key Trends and Opportunities to 2025 (Q3 2021)
|Construction in China - Key Trends and Opportunities to 2025 (Q3 2021)|
Published: September 1, 2021
Content info: 57 Pages
Delivery time: 1-2 business days
Growth in the Chinese construction industry slowed in the second quarter of 2021, owing to the high base in the previous year, when the central, as well as provincial governments launched hundreds of construction projects to stimulate the economy in response to the slowdown caused by the Coronavirus (COVID-19) outbreak and resulting containment measures. According to the National Bureau of Statistics (NBS), the industry's value add grew by 1.8% year on year (YoY) in the second quarter of 2021, compared to a Y-o-Y growth of 22.8% in the previous quarter; however, the double-digit growth in Q1 2021 mostly reflects the low base in Q1 2020, when construction activities were severely impacted by lockdown restrictions.
GlobalData expects the Chinese construction industry to register an annual growth of 7.7% in real terms in 2021, driven by the government's focus on supporting major projects and progressing the development of new infrastructure and urbanization initiatives. For this purpose, the government allocated CNY610 billion (US$89.3 billion) as part of the latest central government budget for 2021. The construction industry's output in the third quarter of this year is expected to continue to be affected by the recent upsurge in COVID-19 infections and the subsequent tightening of containment measures. The industry's output will also be affected by the torrential rains which hit central China in mid-July 2021. The flooding displaced millions of people and caused significant property damage. On a positive note, however, the government readily announced financing to support post-disaster reconstruction in the severely affected provinces.
Over the remainder of the forecast period, the industry is expected to register an annual average growth of 4.2% between 2022 and 2025, supported by investment on infrastructure projects as part of the 14th Five Year Plan (2021-2025). The plan covers development of various sectors, including transport, energy, manufacturing, health, and education, among others. In the long run, the industry's output will be supported by the government's plan to achieve a transport network of 700,000km by 2035, coupled with its plan to achieve carbon neutrality by 2060.
GlobalData's Construction in China - Key Trends and Opportunities to 2025 (Q3 2021) report provides detailed market analysis, information, and insights into the Chinese construction industry, including -
This report provides a comprehensive analysis of the construction industry in China. It provides -