China Occupies a Significant Position Among Emerging Economies Worldwide

China occupies a significant position among emerging economies worldwide due to its fast-growing manufacturing industries, high availability of cheap labor, and rapidly growing construction industry. Consequently, the country attracted a considerable amount of foreign direct investment (FDI) during the review period (2007-2011), which helped the Chinese construction industry to achieve a review-period CAGR of 23.24%. The robust growth of the Chinese construction industry during the review period was driven by the Chinese government's eleventh five-year plan (2006-2011). The hosting of the Olympic Games in 2008 was another revenue source for China's growing construction industry, enabling the overall industry to withstand the global financial crisis of 2009 and record consistent double-digit growth during the review period. Driven by the country's thriving economy, the Chinese construction industry is expected to record a CAGR of 13.68% over the forecast period. The Chinese commercial construction market increased at a CAGR of 21.25% during the review period, growth that was largely driven by the retail buildings category, which recorded a CAGR of 28.55%, and the leisure and hospitality buildings category, which recorded a CAGR of 27.91%. The Chinese retail industry expanded significantly during the review period, growth that was supported by the adoption of various economic reforms such as the relaxation of regulations regarding foreign investment. The industrial construction market was the second-largest contributor to the overall Chinese construction industry during the review period, accounting for 25.8% of total industry value in 2011. Manufacturing plants and chemical and pharmaceutical plants were the largest categories within the industrial construction market, together accounting for more than half of total Chinese industrial construction activity in 2011. The infrastructure construction market was the highest contributor to the Chinese construction industry during the review period, accounting for 33.2% of Chinese construction activity in 2011. During the review period, the market recorded a CAGR of 30.18%, driven by the strong growth of the energy and communication infrastructure category following industrialization and population growth. In 2011, the institutional construction market accounted for 2.7% of total Chinese construction activity, after recording a CAGR of 17.58% during the review period. Overall, Timetric expects the value of the Chinese institutional construction market to increase at a CAGR of 11.01% over the forecast period. The rapid growth of China's middle-class population has increased demand for high-quality homes, a development that played a vital role in helping the Chinese residential construction market to record a CAGR of 21.44% during the review period. The Chinese government target of building 36 million housing units during the twelfth five-year plan is expected to drive the country's residential construction market to record a CAGR of 13.32% over the forecast period. Source: marketwire