China’s construction market growth to slow

By Andy Brown06 March 2019

China construction growth

China’s construction growth is predicted to decline

The construction industry in China will see growth of approximately 4.5% over the next five years to 2023, according to information supplied by GlobalData.

In the fourth quarter of 2017 construction activity in China increased 6.1%, pushing growth for the year up to 4.5%. This is below the double-digit growth which the sector has previously enjoyed.

Investing in large-scale infrastructure projects has been a key part of the Chinese government’s strategy to boost growth. It is partly due to this reason that growth is expected to remain relatively level at 4.5%.

Danny Richards, lead economist at GlobalData, said, “With the authorities taking steps in recent years to rein in excessive debt-driven investment in infrastructure and urban development that had resulted in excess capacity in infrastructure and industry, and oversupply in real estate, the industry is not expected to return to the boom years of double-digit growth.”

Construction equipment sales in China increased dramatically throughout 2017 and 2018 in response to a series of new infrastructure contracts. However, specialist market research and forecasting company Off-Highway Research expect sales to decrease in the future. 

Chris Sleight, managing director, Off-Highway Research, said, “We believe the peak of construction equipment sales has now passed and the market will stabilise at a reasonable level.

“However, forecasting demand in China is always challenging as the government is inclined to intervene to stimulate or cool the economy as it sees fit. If economic growth slows, it may use construction investment as a tool to increase growth and that could trigger another surge in activity. Conversely, if the economy overheats and inflation starts to spike it may target the real estate and construction sectors with measures to slow down growth.”


Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
10 ways to join the hydrogen power revolution
Interest in the use of hydrogen has soared over the past few years as the construction industry races to reduce its carbon footprint. We roundup some recent initiatives
Telescopic boom lifts - the trends
Higher capacities and 100% electric models are the trend. And what lies ahead for 200ft models, or above?
How construction can become sustainable
The construction industry is undergoing a transformative shift to adapt more environmentally friendly practices
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail:
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: