Construction Expenditures in China to Grow 8.5% Annually

Construction expenditures in China are expected to rise 8.5 percent per annum in real terms through 2017. Ongoing urbanization and industrialization, rising income levels, further population and household growth, and the government’s continuing efforts to expand and upgrade physical infrastructure in the country will support healthy growth in construction spending. However, growth will moderate notably from the 16 percent annual gains during the 2007-2012 period, when gross fixed capital formation was boosted by the government’s stimulus program to counter the global financial crisis in 2009. This program ended in 2011, and increases in construction spending along with fixed investment will see a significant slowdown. These and other trends are presented in Construction Outlook in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry market research firm.