Market Research Report
Construction in Colombia - Key Trends and Opportunities to 2025
|Published by||GlobalData||Product code||345399|
|Published||Content info||47 Pages
Delivery time: 1-2 business days
|Construction in Colombia - Key Trends and Opportunities to 2025|
|Published: February 12, 2021||Content info: 47 Pages||
Colombia's construction industry is forecast to partially recover by 11.5% in 2021, after contracting by an estimated 22.8% in 2020. In 2022, the industry is projected to continue to recover to register an increase of 5.9%, and then expand by 3.2% over the remainder of the forecast period (2023-2025). The continuity of governmental programs that promote the development and financing of housing, such as Mi Casa Ya and Viviendas de Interest Social or Social Interest Housing (VIS) and Non-VIS, together with plans to accelerate the implementation of infrastructure works under the fourth generation (4G) road concession program, are expected to continue to support the expansion of the industry in the next years.
However, uncertainty over the duration of the pandemic and the lifting of lockdown restrictions due to issues related to new virus mutations, vaccine efficacy, production, distribution, or hesitancy present major challenges to the recovery of the sector and the wider economy. The second wave of COVID-19 infections (which started during the Christmas holidays) have already forced local authorities to impose new lockdown measures and travel restrictions across major cities. Furthermore, subdued oil prices, excessive bureaucracy and risks associated with social unrest-which could reignite once lockdown restrictions are lifted-as well as the outcome of the presidential elections next year pose further risks to the sector's prospects.
Before the new lockdowns started in December, the Central Bank of Colombia expected the economy to grow between 3% and 7% in 2021, compared with a contraction of between 6.5% and 9% in 2020. However, the bank now expects the country's economy to expand between 2% and 6% this year, and left its benchmark interest rate unchanged at 1.75%-a record low-during its last meeting on January 30, as the second-round of COVID-19 cases and new lockdown restrictions are anticipated to weigh on economic activity, especially during the first quarter of 2021.
In August 2020, President Ivan Duque launched 'Compromiso por Colombia', an investment plan worth COP100 billion (US$30.2 billion) that seeks to reactivate the country's economy and generate more than one million jobs over the next two years. The plan focuses on attracting more private and foreign investment in infrastructure through public and private partnerships in sectors such as transport, energy, water and sewerage, telecommunications, tourism, and hotels. The government also has plans to build 149,700 new homes this year and add 150,000 new jobs to the sector.
This report provides detailed market analysis, information, and insights into Colombia's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Colombia. It provides -