CLEVELAND, OH - Construction spending in China is expected to continue brisk growth, increasing by an average of 8.8% each year through 2016, according to The Freedonia Group Inc., an industry research firm.
While this prediction falls below the rapid construction growth China experienced between 2006 and 2011, it is still above expectations for other major national construction markets, Freedonia said. The research company added that China's construction growth, though thwarted by a slowdown in its general economy, will be fueled by ongoing urbanization and industrialization, rebounding foreign investment funding, rising personal income levels, and further population and household growth.
Construction expenditures in China are almost evenly split among the residential building and nonresidential building and non-building segments, which combined for 10.8 trillion yuan ($1.7 trillion) in 2011. Total construction spending is expected to reach 16.4 trillion yuan ($2.6 trillion) in 2016.
Freedonia's 239-page Consruction Outlook in China to 2016 is available for $5,500.
CONSTRUCTION EXPENDITURES IN CHINA (billion 2010 yuan)
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% Annual Growth |
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Item |
2006 |
2011 |
2016 |
2006- 2011 |
2011- 2016 |
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|
|
|
|
Construction Expenditures |
4983 |
10780 |
16400 |
16.7 |
8.8 |
Residential Building |
1691 |
3560 |
5360 |
16.1 |
8.5 |
Nonresidential Building |
1780 |
3740 |
5560 |
16.0 |
8.3 |
Nonbuilding |
1512 |
3480 |
5480 |
18.1 |
9.5 |
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