Construction industry fears low 2014 growth if planned government projects delayed
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The construction industry is expected to expand by 5 per cent next year, according to the Thai Contractors Association, as long as planned government projects are not disrupted.
If they are, the sector will likely experience declining growth, as state projects contribute half of total construction value annually, association president Aungsurus Areekul said.
The construction sector is expected to post 5-per-cent growth this year, only half of last year’s expansion.
Total value of construction projects this year is estimated at around Bt900 billion, 50 per cent contributed by the state sector and the rest by the private sector.
This year’s forecast low growth is because spending by state agencies did not go as planned.
Had the political situation been stable and the economy healthy, the construction sector could have been expected to expand by 6-8 per cent this year.
The industry has also experienced a labour shortage, which also hampers growth.
Association secretary Nattaporn Promsuthi said the construction industry had also been affected by higher labour and raw-material costs.
