ASIA (Asian countries are projected to see 3.5% to 4.6% GDP growth in the 2nd Q of 2022)
China and India are the world’s most populated countries, accounting for 33% of the world’s population. Both countries are carefully watching and weighing up what is in their best interests, and what will be the long-term fallout from Russia’s invasion of Ukraine. India is poised to buy “cheaper” Russian oil that will benefit its economy. China has not figured out what to do yet. China’s economic trade with Russia is minimal compared to the huge trade it has with the USA, Japan, UK, Canada, South Korea, Australia, and the 27 members of the European Union.
The impact of the Russia – Ukraine war on the construction sector has yet to be fully determined.
India appears to be recovering from the COVID pandemic, having experienced more than 0.50 million fatalities.
Construction-related escalation/inflation is increasing in Asia. India is up to 12.5% and Pakistan stands at 11.5%. The Philippines and Sri Lanka are both reporting 9.9% inflation rates. Look for these rates to increase in the next 3 months.
The Asian economies and construction sector could be severely impacted by the ongoing war in Ukraine. It is difficult to forecast the short-term and long-term impact on these economies and construction sectors.