Having being one of southeast Asia’s strongest performers in recent years, the Philippines construction and cement industries have been hit by the impact of COVID-19 during the 1H20. However, the easing of restrictions, some positive economic indicators and pent-up demand could lead to cement consumption bouncing back in 2021. By Jagdeep Verma, Holtec Consulting, India.
The Philippines is one of the fastest-growing economies in southeast Asia and has a young population with a median age of ~25 years. With around 110m people, it is the seventh most-populous country in Asia and 13th in the world. Almost half the population lives in urban areas.
The economy has been growing robustly, at an average of about six per cent per year for the past decade. The construction industry has also been registering strong annual growth over recent years. This led to annualised cement demand growth of over eight per cent in the last decade. However, the outbreak of the COVID-19 pandemic in 2020 has severely impacted the economy and most sectors are struggling to get back on the development path.
