Asia

ASIA (Asian counties are projected to see 3.4% to 4.9% GDP growth in the 4^th Q of 2023):

The construction sector in China is estimated to grow progressively to 6.1% in the 2^nd half of 2023. China is getting back to its Pre-COVID growth levels. The Chinese construction market is estimated to be $4.5 trillion, or close to 6.5% of China’s GDP.

The Indian construction sector is estimated to grow significantly to 6.5% to 7.5% in the 4^th Q of 2023, India is in the middle of a major infrastructure expansion phase (roads, bridges, railroads, ports and power plants etc.,) that could foreseeably last for at least the next 10 years. The Indian construction market is estimated to be $750 billion, or close to 11.5% of India’s GDP one of India’s major industries.

India is set to overtake China in as the world’s most populated country in 2023, with a population of 1.425 billion. We are seeing more US & Western European capital investment shifting into India. India is now viewed as the place to build new manufacturing / production facilities.

In India, the military standoff between India and China in the northern Himalayan region is tenuous and threatening, with troops positioned in close proximity to each other, both countries are claiming sovereignty of the disputed border area.

Indonesia started construction on its’ new futuristic capital “Nusantara” in 2022, after Indonesia’s President Widodo proclaimed that Jakarta, the current overcrowded, unhealthy and polluted capital which is predisposed to earthquakes, flooding and is steadily submerging below sea level would be withdrawn as Indonesia’s official capital city. The new capital 1,300km (800 miles) away from Jakarta on the island of Borneo. Thousands of construction workers are currently clearing the Nusantara site, installing utilities, roads and temporary worker camps. Construction of this new capital will take at least 5 years or more and will cost many billions of dollars.

The Japanese construction sector is estimated to be $575 billion in 2023 or close to 8.5% of the country’s GDP. Japan’s construction industry for the sixth year continues to experience slow or minimal growth in its’ civil / infrastructure, home building, commercial, institutional and industrial sectors, perhaps mirroring Japan’s steadily declining population. Japan’s construction industry is forecast to grow by 1.5% to 2.5% in the 2^nd half of 2023 from the previous year.

Some Asian nations such as India, Bangladesh, Malaysia, Sri Lanka, Indonesia, Singapore, Pakistan, Philippines, Thailand, Vietnam and Laos in 2023 / 2024, have a huge need for new highways, bridges and other transport and power related projects.

Escalation / Inflation is starting to trend downwards  in Asia. India is experiencing  4.7%, and Pakistan stands at more than 25%, Singapore is reporting 4.6% inflation in September,  the Philippines & Sri Lanka are both reporting 5.5 % inflation rates.