ASIA (Asian counties are projected to see a substantial reduction in GDP growth in the 2nd half of 2020)
For the most part, the Asian construction sector is dealing rather well with the effect of COVID-19 and is currently set to get beyond the last two difficult months. Most countries are starting to increasingly move forward again as we transition into the 2nd half of 2020.
Pre-COVID-19, almost a fifth of the world’s GDP originated out of China. The once buoyant Chinese economy has slowed down rapidly in the 1st half of 2020. GDP growth in the 2nd half of 2020 is forecast to be 1% to 2%, down significantly from a year back.
China’s factories and production facilities are generally back in business as we transition in the 2nd half of 2020. The Chinese economy & construction sector will experience an unprecedented slowdown in 2nd & 3rd Q of 2020.
Hong Kong could present future challenges to China once COVID-19 has been resolved, social unrest do not appear to be waning. It would appear that China is about to change the one country, two systems previous approach, this could result in mass demonstrations and could stymie future construction.
COVID-19 has caused the cancellation of the upcoming Olympics in Japan. Japanese Prime Minister Shinzo Abe pronounced in mid-March that the 2020 Summer Olympic Games will be postponed, initial plans are to have the Summer Olympic Games in mid-2021.
Vietnam appears to be handling the CONVID-19 crisis reasonably well, with no reported deaths. Construction work never stopped during COVID-19.
India in mid-March announced that the country would be imposing a lockdown on Indians moving / traveling outside their homes to prevent the spread of the COVID-19. Many Indian planned or ongoing construction projects need to be re-evaluated, delayed or in the most unpleasant case cancelled.
South Korea, Indonesia, the Philippines, Cambodia, Bangladesh and Laos have all had COVID-19 issues, it appears they are dealing with the COVID-19 crisis reasonably well. COVID-19 will unfortunately impede or slow down most Asian economies and construction sectors somewhat for the balance of 2020.