It would not take too much guess­ing to fig­ure out where the bulk of the world’s con­struc­tion activ­ity is tak­ing place. Of course, it is in China, but who would have thought global con­struc­tion would decline from a year-on-year rate of almost 20% to close to zero once China is stripped out? This is what the fas­ci­nat­ing chart below by CRU, WSD and Mcquarie Research (via Agora Financial’s 5 Min Fore­cast) high­lights.

“The Chi­nese are lay­ing high­ways like nobody’s busi­ness,” added Agora’s Chris Mayer. “By the end of 2008, China had an esti­mated 60,000 km of high­way. The US has 75,000 km. Over the next few years, China plans to have 85,000 km of roads.”

Is build­ing activ­ity in China a boom or a bub­ble? Please share your thoughts with read­ers by post­ing a com­ment. (Click on “Com­ments” below the head­ing of this post and type away.)

Source: Agora Financial’s 5 Min Fore­cast, March 10, 2010.

Dr. Prieur du Plessis is an investment professional with 26 years' experience in investment research and portfolio management. More than 1,200 of his articles on investment-related topics have been published in various regular newspaper, journal and Internet columns, including his blog, Investment Postcards from Cape Town. He has also published a book, Financial Basics: Investment. Prieur is Chairman and principal shareholder of South African-based Plexus Asset Management, which he founded in 1995. The group conducts investment management, investment consulting, private equity and real estate activities in South Africa and a number of foreign countries. He also serves as Honorary Consul of Slovenia for South Africa, actively developing economic, cultural and scientific relations between Slovenia and South Africa. Prieur is 54 years old and live with his wife, television producer and presenter Isabel Verwey, and two children in Cape Town, South Africa. His leisure activities include long-distance running, traveling, reading, motor-cycling and scripophily. Read more from the author/contributor here.

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