The construction output in Northeast Asia is forecast to record a 4.2% growth and reach $4.71 trillion in 2022 compared to $4.52 trillion in 2021. It will account for 39% of the projected $12.19 trillion of global output this year. However, the growth of construction output in Northeast Asia in 2022 has been revised downwards by 0.8% this quarter, due to the slowing construction activities across the region, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Construction Market Size, Trends and Growth Forecasts by Key Regions and Countries, 2022-2026’, reveals that only China, Taiwan and Japan recorded real construction output growth in 2021.
The remaining construction industries of the region recorded a second successive contraction last year, with the pandemic-induced scarring of potential construction output deepening as a result.
Out of the construction industries which contracted last year, only South Korea is expected to recover to its pre-pandemic output this year. A cause for further concern is the slowing of activity in the Chinese construction industry, the largest in Northeast Asia and globally, with growth slowing to just 2.1% in 2021 and headwinds mounting in the first quarter of this year.