Myanmar’s construction industry is forecast to record rapid growth in the next five years, at an annual average rate of 10.37%, finds a new report by Timetric’s Construction Intelligence Centre (CIC). In real terms, the industry’s value stood at US$8.2 billion in 2015, and is anticipated to value US$13.5 billion in 2020.
According to the report, the growth will be supported by the country’s improving economic conditions, but will mainly depend on government investments in residential, energy and utilities, and public infrastructure projects, as well as a rise in foreign investments.
Danny Richards, Lead Economist at Timetric’s CIC comments: “Government flagship programs such as the National Transport Master Plan, National Export Strategy (NES), and National Electrification Plan will promote industry growth over the next five years. However, the underdeveloped regulatory and financing environment and a lack of transparency in the tendering process will prevent the construction industry from expanding at a faster pace.”
Residential construction was the largest market in Myanmar’s construction industry during the last five years, accounting for 49.9% of the industry value in 2015. The market rose from US$3.6 billion in 2011 to value US$5.0 billion in 2015, recording a CAGR of 17.89% in nominal terms. This growth was driven by government investments in its affordable housing program. During the next couple of years the market is forecast to remain the largest in the industry, to value US$9.7 billion in 2020.
Infrastructure construction was the second-largest market in the construction industry during the review period, accounting for 19.4% of the industry’s total value in 2015. The market rose from US$1.3 billion in 2011 to US$1.9 billion in 2015, at a CAGR of 20.13%, in nominal terms. Over the forecast period, infrastructure construction is expected to maintain its position, supported by the ongoing government efforts to improve this segment. Accordingly, the government will invest US$26.8 billion under the National Transport Master Plan, allocating funds to road, rail, water and air transportation projects until 2030. Consequently, infrastructure construction is expected to reach US$4.2 billion in 2020.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/asia-pacific-rim/22062016/myanmar-construction-industry-billion-2020-315/