Growing pains: southeast Asia's looming overcapacity

Growing pains: southeast Asia's looming overcapacity
Published: 29 April 2016


Positioned between the two most populous nations on Earth, the emerging economies of southeast Asia have ridden the wave of economic growth in the early years of the century. Between 2000 and 2014 the 10 ASEAN countries saw their collective real GDP grow at 5.7 per cent annually and look set to continue this trend over the next five years. Cement demand has kept up with this brisk pace of expansion and – according to figures from Morgan Stanley – will continue to do so, growing at 5.2 per cent each year to 2020. But despite the good news the cement sector risks becoming a victim of its own success. Surging consumption has triggered a massive expansion in capacity across the board.















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