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construction orders-2023 forecast
Construction orders to drop 12.3 pct in 2023: analyst
SEOUL, June 29 (Yonhap) -- Construction orders in South Korea are likely to fall about 12 percent on-year in 2023 due to sluggish private and government sectors, an expert forecast Thursday.
Local builders' orders are likely to shrink 12.3 percent from a year earlier to 201 trillion won (US$153 billion) this year, Park Hyeong-ryeol, vice president of Blitz Asset Management, told a seminar hosted by the Korea Federation of Construction Contractors.
In the first half of the year, the country's construction orders were estimated to have decreased 8.6 percent from a year earlier, with the private sector posting a 9 percent drop and the government sector registering a 7.4 percent decline.
In the second half of the year, construction orders are projected to dip 16.1 percent on-year as private-sector orders are expected to slump around 20 percent.
Park said construction orders are projected to remain in the doldrums in the second half due to a cut in state infrastructure spending and the government's emphasis of fiscal soundness.
Private-sector orders are also likely to remain weak amid growing concerns over an economic slowdown and high interest rates, he said.
Making matters worse, local builders will likely continue to be gripped by rising prices of raw materials, high labor costs and worries about soured project financing loans.
In contrast, Park forecast local construction companies' overseas orders to expand 13.9 percent on-year to $35.3 billion this year thanks to strong demand from the Middle East.
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