ASIA (Asian counties are projected to see a rebound in GDP growth in the 2nd Q of 2021)
The major countries of Asia have weather the COVID storm rather well compared to its economic rivals – the USA & Europe. China has seen 90,000 + confirmed cases of COVID & remarkably less than 5,000 deaths. India has seen close to 12 million confirmed cases of COVID & more than 160,000 deaths.
We are starting to see positive signs the COVID-19 epidemic is starting to decline in most Asian countries.
China’s economy and construction sector has recovered rapidly, and rigorous lockdowns and population tracing policies checked the spread of the virus. The Chinese government also funded billions of dollars on future infrastructure projects.
Pre-COVID-19 almost a fifth of the world’s GDP originated out of China. The once buoyant Chinese economy slowed down rapidly in 2020. GDP growth in 2021 is forecast to be 6% to 7%.
China’s factories and production facilities are back in business as we transition into the 2nd Q of 2021. The Chinese economy & construction sector has experienced a growth spurt in the last 3 months.
Hong Kong may very 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 & economic activity.
India now ranks # 5 in the economy league table, larger than both the UK & France. Look for India’s 2021 GDP to be between 8% & 10% once the COVID virus is fully contained.
In general, the Asian construction sector dealt well with the effect of COVID-19 and is currently set to get beyond the last twelve difficult months. Most countries are starting to increasingly move forward again as we transition into the 2nd Q of 2021.
Japan has weathered COVID-19 reasonably well with just over 470,000 confirmed cases and close to 9,000 deaths. COVID-19 prompted the cancellation of the 2020 Olympics in Japan. The Summer Olympic Games will be held in mid-2021, however no spectators will be allowed into the various stadiums. Japan’s construction sector continues to experience minimal growth.
Vietnam successfully handled the pandemic crisis, with very few confirmed cases. Construction work never stopped during COVID-19.
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 some Asian economies and construction sectors somewhat in the 2nd Q of 2021, however recent indications from this region of the world is that the construction sector is starting to see some significant improvements.