ASIA (Asian counties are projected to see a rebound in GDP growth in the 4th Q of 2020)
In general, the Asian construction sector is dealing moderately well with the effect of COVID-19 and is currently set to get beyond the last six difficult months. Most countries are starting to increasingly move forward again as we transition into the 4th Q 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 2% to 3%, down significantly from a year back, but still not too bad. China’s factories and production facilities are generally back in business as we transition into the 4th Q of 2020. The Chinese economy & construction sector will experience a growth spurt in the final months of 2020.
Hong Kong may well present future challenges to China once COVID-19 has been resolved, social unrest does not appear to be waning. China has changed the one country, two systems previous approach, this could result in mass demonstrations and could stymie future construction.
COVID-19 has instigated the cancellation of the 2020 Olympics in Japan. Japanese Prime Minister Shinzo Abe pronounced in mid-March that the 2020 Summer Olympic Games would be postponed, initial plans are to have the Summer Olympic Games in mid-2021.
Vietnam appear to be handling the COVID-19 crisis reasonably well, with very few confirmed cases. Construction work never stopped during COVID-19.
With more than 2.5 million confirmed COVID-19 cases, India is still in the midst of dealing with the virus. 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 reevaluated, delayed or in the most unpleasant case cancelled.
Indonesia, South Korea, the Philippines, Cambodia, Bangladesh and Laos have all had COVID-19 issues, it appears they are dealing with the COVID-19 crisis relatively well. COVID-19 will regrettably impede most Asian economies and construction sectors somewhat for the balance of 2020. However, recent indications from this region of the world is that the construction sector is starting to see some improvement.