Construction Market Insights H2 2024 – APAC & GCC

This Construction Market Insights report provides an overview of the construction industry in APAC and GCC, across countries such as Japan, Taiwan, Australia, Singapore, Malaysia, KSA, India, UAE and South Korea. including macroeconomics, construction industry overview, commodity movements and supply chain outlook.

Macroeconomic Overview  

Economic growth in Asia Pacific picked up in early 2024, supported by robust domestic demand and a surge in electronics exports. The IMF’s latest update lifts APAC’s 2024 growth forecast from 4.5% to 4.6%, with the region set to account for 60% of global growth. In 2025, favourable monetary conditions are expected to further boost activity, with growth revised up to 4.4% from 4.3%.

The GCC region is maintaining steady growth, primarily driven by ongoing diversification efforts and public investments in non-oil sectors. Strong performance in industries such as tourism, logistics, and technology are helping to offset global economic challenges, positioning the region for continued resilience despite oil market fluctuations.

Interest rates

Hikes in interest rates have slowed down economic growth across the region, but overall growth remains positive. With inflation stabilizing, central banks are either maintaining policy rates at current levels or adopting the US Federal Reserve's rate cuts. In the APAC region, approaches remain divergent, with some countries following these cuts, while others are cautiously keeping rates unchanged due to anticipated inflationary pressures.

Construction Industry Overview

Despite challenges caused by elevated interest rates, high inflation costs, skilled labour shortages and a weak global economic outlook, construction output continues to grow, fuelled largely by substantial investments in critical sectors including infrastructure, data centres, semiconductors, and renewable energy.

Construction Inflation

Construction inflation in 2024 is lower or steady compared to 2023. However, volatility in metal prices, rising labor costs, and ongoing geopolitical tensions are likely to drive up costs in 2025, particularly in the mission-critical sector, which is experiencing heightened activity in the region.

Download the full report to access these insights and analysis of the construction market for APAC & GCC.