Building And Construction In Asia Pacific > Thailand > Thailand
Despite strict social distancing measures, overall construction work done in Q2 rose an unexpected 6.4% in nominal terms. The expansion was mainly attributable to government construction under the development plan of transport and logistics and the development plan of water resource management, which resulted from the acceleration of disbursements after the fiscal 2020 budget bill was enacted. Civil engineering work done in Q2 thus rebounded by 18.6% after it declined 16.0% in Q1 2020 and 13.4% in Q4 last year. Although both residential and non-residential building work done also held up better than expected in Q2, we expect declines to accelerate in H2 due to a sharp drop in new project starts in H1 amid the rapid economic deterioration. For the whole year of 2020, overall construction work done is expected to decline 6.1%, revised up from June’s forecast of -10.2%. The civil engineering sector growth in H2 is supported by fiscal spending.
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