Dublin, April 17, 2024 (GLOBE NEWSWIRE) -- The "Latin America Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
The Latin American construction market is also reeling under the impact of macroeconomic factors, including rising inflation and interest rate environment. Argentina is planning to lower its infrastructure investments in 2024. The number of projects announced in budget 2024 are slightly lower compared to those announced in budget 2023. However, market scenario has commenced to change in nations like Mexico and Brazil.
Investment in sectors like transport, housing, renewable energy, and oil is expected to drive the growth of the Brazilian construction industry over the next five years. In H2 2023, the government unveiled a US$76 billion public spending program over the next four years. Construction spending has also increased in Mexico in H2 2023 and the trend is projected to further continue in 2024.
Argentina is planning lower infrastructure investment due to surge in inflation in 2023
Inflation is running well over 100% in the Argentinian market. This has hamstrung the growth of the infrastructure construction sector over the last few years. The trend is projected to further continue from the short to medium-term perspective, as the current government is planning to reduce its spending in 2024.
This comes despite facing an adverse scenario in the general elections in October 2023. In its budget 2024, the government has listed 4,107 projects valuing 5.30 trillion pesos or US$15.1 billion. Of this, the public works ministry is projected to receive 1.5 trillion pesos. However, the number of projects announced is lower than those announced under budget 2023, which stood at 4,400. Although the nominal amount exceeds last year's program by 2.33 trillion pesos, in real terms, it is approximately $200 million lower.
The lower spending will put further pressure on construction firms, which have been already reeling under the pressure of cost blowouts driven by logistical bottlenecks globally. This, in turn, will impact the growth of the regional market from the short to medium-term perspective.
Infrastructure spending is poised to grow in the Mexican market over the next few quarters
Mexico is seeking to attract global automakers, including Tesla, to its shores, as companies are looking to tap into the growing electric vehicles market in the region. To make Mexico a suitable market for these automakers, the government needs to invest in infrastructure projects, enabling smooth operations. As a result, the publisher expects investment in the development of necessary infrastructure like schools, roads, basic services, and health centers.
Tesla, alongside the suppliers, will generate an investment of US$15 billion in the Mexican market over the next two years. The investment is largely directed towards a factory that is under construction. While Tesla has not revealed the investment amount, Mexican officials have stated the factory construction will involve a cost of US$5 billion. BMW, another global automaker, announced an investment of 800 million euros towards the construction of a manufacturing plant in Mexico. The investment by these global giants in the Mexico market will also aid the growth of the broader construction in Mexico from the short to medium-term perspective.
Brazilian government plans to investment billions of dollars to drive economic growth and development
The Brazilian President, in H2 2023, unveiled an ambitious US$76 billion spending plan over the next four years. By increasing investment in construction, infrastructure projects, and ecological transition, the government aims to accelerate the growth of the economy through state spending. Some of the target areas include transport, energy, healthcare, education, water, and sewage.
Termed as the Growth Acceleration Programme, the initiative draws inspiration from the massive stimulus package announced by the United States President Joe Biden. In addition to state spending, the Brazilian President is also expecting significant investment from the private sector and state-controlled enterprises.
The government anticipates the combined value to soar to $287 billion in the next four years. The significant spending in the construction and infrastructure space is, therefore, expected to accelerate the growth of the broader market in Brazil over the next three to four years.
In addition to this, the government has also announced the renewed affordable housing program in Brazil. The new rules announced by the government, including reduced interest rates and increased subsidies for property purchases, will enable the government's goal to build two million housing units by 2026. This is projected to drive the growth recovery in the Brazilian residential construction market over the next three to four years.
This report provides data and trend analyses on Latin America construction industry, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 1,500+ charts and 1,200+ tables. It details market size & forecast, top cities construction data, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.
It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.
Key Topics Covered:
Bundled offering, comprising 5 country reports.
- Brazil Construction Industry Databook
- Chile Construction Industry Databook
- Argentina Construction Industry Databook
- Colombia Construction Industry Databook
- Mexico Construction Industry Databook
Each country report covers the following modules
- Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry.
- Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
- Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of top 10 cities by construction value for each country.
For more information about this report visit https://www.researchandmarkets.com/r/dtibp4
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