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Taiwan Infrastructure Report Q1 2014

Taiwan construction market is forecast to be affected by structural deficiencies in the Chinese economy and municipal elections in Taiwan

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2014-01-09 08:41:01 - Taiwan Infrastructure Report Q1 2014 - a new market research report on

The lack of growth in Q313 indicates that recovery in Taiwan´s construction activity is proceeding slower than previously expected, prompting us to revise down our full-year growth projections for 2013 from 2.0% to 1.1%. Looking at 2014, we are concerned that the structural deficiencies within the Chinese economy and the municipal elections in Taiwan could hamper construction activity. Given this unfavourable investment climate, we have revised down Taiwan´s construction growth forecasts for 2014, with real growth for the sector expected to reach 1.9% (previously 2.9%). Over the long-term, we expect Taiwan´s construction sector to outperform its 10-year historical average, though we remain concerned about Taiwan´s demographic profile and its lack of progress in achieving greater innovation in the tech sector



and greater economic integration with China.

In September 2013, Taipei´s Department of Rapid Transit Systems announced that it had reviewed the contractual conditions for the Taipei Twin Towers project and will start negotiating a new contract with BES after Taipei Mayor Hau Lung-bin approves the review. The department was expected to start bidding procedures for the project with BES in the same month.

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Mike King
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