Industry Trend Analysis - Improving Financing Options Support Strong Growth Outlook - AUG 2017
BMI View: Growth in foreign investment, the use of PPPs and the availability of development financing is providing strong support for the expansion of Bangladesh's construction market. O perational challenge s including land acquisition and a weak bureaucracy continue to prevent industry growth rates from reaching their full potential as they are preventing the implementation of some of Bangladesh's largest PPP projects .
Expansionary trends in foreign investment and development financing are converging in Bangladesh, supporting fast growth in the country's underdeveloped construction market. We forecast growth in Bangladesh's construction industry over the next five to reach an average of 9.0% annually - among the fastest in Asia. Even this, however, is below the full growth potential of the market as we believe that the numerous financial, operational and political hurdles in Bangladesh will hold back projects from taking off or being completed on time and within budget. Additionally, while the growing use of public-private partnerships has the potential to unlock more financing for projects, we note that the construction and operation of PPPs will face similar challenges, which will continue to deter prospective investors.
Investment Interest Up As PPPs Proliferate
|Strong Growth Sustained|
|Bangladesh - Construction Industry Growth Forecasts|
|f = BMI forecast. Source: Bangladesh Bureau of Statistics, BMI|