Construction And Infrastructure Growth To Accelerate
BMI View: We still expect the recovery in Taiwan's construction and infrastructure sectors to accelerate at a modest pace over 2014 and 2015, despite a slow start over the first half of 2014. Our positive outlook is due to a relatively conducive monetary environment for construction, changes in the country's energy policy and the government's desire to improve transport links.
The recovery in Taiwan's construction sector has become rather tepid after a relatively strong pick-up in growth in late-2013; however, we still expect growth to accelerate in 2014 and 2015. The latest figures from the National Statistics Bureau showed that Taiwan's construction sector expanded by just 0.5% year-on-year (y-o-y) in Q114. This was significantly lower than the growth of 3.3% y-o-y in Q413 and 2.6% y-o-y in Q113.
Nevertheless, we still expect the recovery in Taiwan's construction and infrastructure to accelerate at a modest pace over the short term. We are maintaining our forecast for construction real growth to reach 1.8% and 2.5% in 2014 and 2015, compared to 1.2% in 2013. Meanwhile, infrastructure real growth is expected to reach 3.0% and 3.9% in 2014 and 2015 respectively, compared to 1.5% in 2013.
|Taiwan Quarterly Construction Industry Value Data|