In 2018, the Peruvian construction industry’s output value was estimated to be US$28.7 billion. According to GlobalData, this is expected to grow to US$36.6 billion in 2023, measured at constant 2017 US dollar exchange rates. This would be close to an annual capacity of 5%.
Following two years of contraction, the Peruvian construction industry recovered in 2017, registering growth of 2.4% in real terms in 2017, and a further 4.5% in 2018. GlobalData has reported that this increase was due to positive developments in economic conditions, a revival in investor confidence, and investments in transport infrastructure, energy, and housing construction projects.
“The industry’s output value is expected to continue to expand between 2019 and 2023, with investments in infrastructure, health and education, and housing projects continuing to drive growth,” said Danny Richards, Lead Economist at GlobalData.
This has been reflected in the rise in construction permits. The total construction permits issued in the country grew by 13% in 2018, according to the National Institute of Statistics and Informatics. To account for 29% of the industry’s total value in 2023, infrastructure construction is expected to increase in importance over the forecast period. Growth over the forecast period is expected to be supported by the government’s plans to develop transport infrastructure in Peru, with an aim to reduce traffic congestion.
“The total construction project pipeline in Peru – as tracked by GlobalData and including all mega projects with a value above US$25 million – stands at US$126.1 billion,” said Richards. “The pipeline, which includes all projects from pre-planning to execution, is relatively skewed towards early-stage projects, with 64.7% of the pipeline value being in projects in the pre-planning and planning stages as of February 2019.”
Read the article online at: https://www.worldcement.com/the-americas/01032019/globaldata-reports-construction-in-peru-gathering-momentum/