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)

 

% Annual Growth

Item     

2006

2011

2016

2006-

2011

2011-

2016

 

 

 

 

 

 

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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