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Japan's construction sector sees a steady growth in 2021 post COVID-19 impact

  • GlobalData expects the construction industry to grow by 5.1% in real terms in 2021, following a contraction of 7% in 2020. Japanese construction investment continued to remain weak in the first half of this year, with private investment falling by 1.9% YoY in H1 2021, following a contraction of 4.8% in H1 2020.

  • The commercial sector has been severely affected by the reduction in tourist inflows during the pandemic. Although arrivals edged up marginally to 51,100 in July 2021, they remain significantly below the three million arrivals recorded in July 2019.

  • The government’s aim to develop transport infrastructure and enhance regional connectivity will further support industry growth over the forecast period. Progress on the JPY7.1 trillion ($65.2 billion) Tokyo–Nagoya Maglev Line continues to be delayed, due to environmental objections over groundwater loss from the Oi river basin.

Japan's construction sector sees a steady growth in 2021 post COVID-19 impact

Published: October 2021
Source: GlobalData

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