The second half of 2023 was characterised by sticky core inflation and commodity price spikes and prolonged geopolitical shocks, with global growth expected to come in at 3.0 per cent, slowing from the 3.5 per cent growth in the preceding year.
The global construction industry is not spared from the risks associated with high inflation rates, including subdued project commencements and increasing financial vulnerabilities.
In this report, the majority of the region’s construction sector continues to reflect stabilised material cost in the second half of 2023, as all seven cities covered reflected no change or decrease in material costs, while increase in labour costs have been reported in three of the same cities. Tender price movements are expected to continue escalating in 2024, with a wide range of Y-o-Y movement compared to 2023.
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