While infrastructure has been an important priority area for Southeast Asian economies, the pandemic outbreak will certainly blur this focus. Prioritising health and employment will be the key goal for most emerging economies. Covid-19 has led to disruptions in project delivery, raw material availability, labour supply, capacity addition and investments.
The spread of Covid-19, declared a global pandemic by the World Health Organization in March 2020, brought with it an unprecedented disruption in economic activities worldwide, as countries resorted to lockdowns, implying massive economic costs.
Southeast Asia (SEA) faces an increasing need for sound infrastructure creation. The region’s gross domestic product (GDP) surged to $2.79 trillion in 2017 from $1.19 trillion in 2000, registering a compound annual growth rate (CAGR) of 5.13 per cent.
Southeast Asian countries grew much faster than most other economies of the world in 2017. However, infrastructure development has been trailing behind in the growing economies of the region, resulting in a huge need for infrastructure investments.