Market Research Report
Construction in Peru - Key Trends and Opportunities to 2024
|Published by||GlobalData||Product code||935285|
Delivery time: 1-2 business days
|Construction in Peru - Key Trends and Opportunities to 2024|
|Published: September 7, 2020||Content info:||
Prior to the Coronavirus (COVID-19) outbreak, the pace of expansion in Peru's construction industry slowed in 2019, as investment growth was undermined by political upheavals, lower public spending, weak economic growth and a deceleration in gross fixed capital formation. The industry registered a marginal growth of 1.6% in real terms in 2019 - down from 5.4% in 2018.
With the emergence of the pandemic and the stringent measures taken by the government to contain the spread of the virus, the construction industry is now set to contract by 21% in 2020. The current output projections are in line with the deep decline in economic activity in the first half of the year, and the projected gradual recovery in the second half of 2020, as the gradual reopening of construction activities and copper mines across the country will support the industry over the coming months. However, further downward revisions to Peru's construction output forecasts are likely if the COVID-19 outbreak worsens and the government restrictions to control its spread are further extended.
In August 2020, Prime Minister Walter Martos announced that public investment in the country is expected to increase by 20% in the second half of 2020, and by 10% in 2021. Accordingly, public investment worth PEN20 billion (US$5.6 billion) will be invested in the second half of the current year, and PEN35 billion (US$9.8 billion) in 2021 to reactivate the economy.
GlobalData forecasts the construction industry to shrink by 21% in 2020. The industry will recover, posting an average annual growth of 5.7% between 2021-2024. However, key risks remain with Peru's construction industry outlook, notably the increase in the number of new COVID-19 cases in the country and any associated containment measures, which could have an adverse impact on construction spending
This report provides detailed market analysis, information and insights into Peru's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Peru. It provides -