ASIA (Asian countries are projected to see a rebound in GDP growth in the 1st Q of 2021)
China’s economy and construction sector has recovered rapidly, 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 the 1st half of 2020. GDP growth in the 1st half of 2021 is forecast to be 4% to 5%, down somewhat from a year back, but still not too bad. China’s factories and production facilities are generally back in business as we transition into 2021. The Chinese economy & construction sector has experienced a growth spurt in the final three 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 & economic activity.
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 1st Q of 2021.
Japan has weathered COVID-19 reasonably well with just over 200,000 confirmed cases and close to 3,000 deaths. COVID-19 has instigated the cancellation of the 2020 Olympics in Japan. Japan announced in mid-March that the 2020 Summer Olympic Games would be postponed, initial plans are to have the Summer Olympic Games in mid-2021. 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.
With more than 10 million confirmed COVID-19 cases and close to 150,000 deaths, 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 canceled.
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 1st Q of 2021, however recent indications from this region of the world is that the construction sector is starting to see some significant improvements.