Capeco: the growth expectations of the construction sector have increased

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Infrastructure

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July 3, 2018

Capeco: growth forecasts for the construction sector increased

Construction companies forecast a 5% increase in their level of activity, almost double the forecast Of March.

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Construction companies are starting to see with more optimism the possibility of growth in 2018: their expansion forecasts have increased by more than two points, from 2, 58% in March to 5.09% in June this year. The Peru Construction Chamber (Capeco) in its latest economic construction report. The strongest increase in activity in the sector would be due to the increased dynamism of public infrastructure works, particularly in the case of roads and water and sanitation projects. 39; sewers.

The biggest optimism is part of a period of good results for the sector: INEI recently announced that the construction sector had increased 10.55% in April, completing eleven consecutive months of growth. In the four months from January to April, the sector grew by 6.5%, exceeding the country's GDP for this period (4.4%) and exceeding the performance of the first four months of the last five years.

The projects of the companies of the sector also increased: in March of this year, they should increase of 3,05%, now one expects a growth of 4,16%.

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Growth with Obstacles

Capeco predicts that the growth of the sector will continue in May. According to Guido Valdivia executive director of the organization, the increase would exceed two figures and thus complete a whole year of growth. However, said that it is possible that this growth will slow down later because the statistical effects will not continue to accompany the figures for the rest of the year – in April 2017, the activity in the sector has suffered a decline of 8.1% –

In this sense, Valdivia pointed out that even the BCR has revised its GDP growth figures for the sector for 2018, from 8.5% in March to 7, 5% in June, due to declining public investment prospects. "The new target set by the issuing entity would also be hampered by the fact that in the second half of 2018, there will be no more statistical effect that benefited at the level of the company." sectoral activity in the first part of the year ", Capeco

Valdivia explains that" the problems of resumption of work impacted by possible cases of corruption and obsolescence and inefficiency of the public works management model "are at the bottom of the weakest expectations.