BMI View: We forecast the country's construction sector to grow by 5.5% in 2018 due to support fromongoing projects across the various sectors.
Forecast & Industry Developments
We forecast South Korea's infrastructure sector to expand by 7.1% in 2017 and 4.3% in 2018. The sectoris likely to expand at a slower rate amid the tapering off of projects related to the PyeongChang Olympicsand a gradually slowing real estate sector.
We believe that the government will persist with its efforts to boost energy security and reduce thecountry's reliance on fuel imports, informing our forecast for the sector's share of total infrastructure toincrease from 26.9% in 2017 to 28.2% in 2026. However, we note that the risks are weighted to thedownside with the new Moon Jae-in administration having stated its wish to shift away from nuclearpower.