Philippines Construction Sector Forecast: An excellent opportunity for contractors, heavy equipment, machinery, building suppliers, and engineering companies.
Fitch Solutions County Risk & Industry Research predicts that the construction industry in the Philippines will see a solid rebound as the government continues its infrastructure development, particularly rail and road expansion.
Philippines Construction Facts
According to Fitch’s report, Philippines Construction building activities and infrastructure investments have increased considerably in recent months. It said despite recent market-wide lockdowns, a rate of real growth of 25.7% was recorded in the Philippines’ construction sector in the second quarter, among the highest ones in its history.
However, the think tank emphasized that this is primarily due to low base effects from the pandemic’s first impact in the second quarter of 2020. Still, it indicates a very robust market rebound by their early forecasts. According to the report, the construction sector is predicted to rise by 16.1% this year, after a 26% decline in 2020 due to the pandemic’s effect.
The Department of Public Works and Highways had the most significant budget increase of P695.7 billion in last year’s national budget, while the Department of Transportation received P87.9 billion. For 2022, the government has allotted P1.18 trillion for its massive infrastructure building under the Build Build Build program, a significant policy that encourages investment in the construction industry.
The Philippine government has chosen 112 projects as part of the program. It is committed to boosting the construction sector’s development as its economic growth is projected to average 6% per year until 2030.
In Fitch’s report, it is anticipated that in the next coming years, transportation infrastructure, especially rail and road development, will be the main driving force behind the country’s infrastructure and Philippines Construction growth. This will be aided by a solid pipeline of projects across all modes of transport, which has continued to grow significantly.
Philippines Construction: Build, Build, Build
With the Duterte administration entering its last year, the “Build, Develop, Construct” program remains to supply its pledge of producing infrastructure that enhances the lives of Filipinos when faced with the Covid-19 pandemic and also various other difficulties, Cabinet assistants stated in a media instruction.
Governmental Adviser for Flagship Programs as well as Projects, Secretary Vince Dizon, who is likewise head of state and Chief Executive Officer of the Bases Conversion as well as Development Authority (BCDA), assured that while Philippines Construction “Build, Build, Build” continued to make progress, it is also establishing the foundation in regards to a framework for the following management and also past.
“We only have less than one year left in the Duterte administration. Whoever the following head of state will certainly be, it is incumbent upon the next management to not only continue, but to fast-track all the great that has actually been done under the leadership of President Duterte,” Dizon claimed.
Click below to read the magazine.
Click here to download the magazine.
Click here to read on Yumpu.
