The Argentine construction industry is expected to register an annual growth of 30.1% in real terms in 2021, following an annual decline of 18.9% in 2020. The sector’s output in this year will be supported by the weak base effect of last year, coupled with the acceleration of public works to reactivate the economy. According to the National Institute of Statistics and Censuses (INDEC), the construction industry’s value add rose by 46.6% year on year (YoY) in the first half of 2021. The industry is expected to register a stable growth, even in the second half of this year, supported by an improvement in investor and consumer confidence amid falling Coronavirus (COVID-19) cases and progress in the country’s vaccination drive. According to the Synthetic Indicator of Construction Activity (ISAC), which is closely linked to the GDP value add construction data, the construction industry remained strong in the third quarter of this year, and continued to register double-digit year-on-year (Y-o-Y) growths from July to September 2021.
The industry is expected to register an annual average growth of 2.6% from 2022 -2025, supported by investments on transport, energy, water, residential, education and healthcare projects. In September 2021, the government submitted the ARS13.3 trillion (US$133.4 billion) draft budget to the Congress. The budget includes an allocation of ARS434.3 billion (US$4.3 billion) towards the Ministry of Public Works. Previously, in August 2021, the Ministry of Public Works reported that it is executing over 2,530 projects in 23 provinces and the city of Buenos Aires. In addition to these, the ministry has another 1,366 projects in the evaluation or approval stages.
A downside risk to the Argentine construction industry could arise from the major macroeconomic imbalances, including growing fiscal constraints, sovereign debt issues, a falling peso and rising inflation; this is likely to limit much-needed foreign and private investment. In addition, Inflation, a weakening peso and supply side bottlenecks will undoubtably drive up costs in the value chain and likely hinder major construction projects in the forecast period. According to the INDEC, the Construction Cost Index in Greater Buenos Aires rose by 3% in September 2021, compared to the previous month. This growth was driven by an increase in both labor and material costs. Although macroeconomic stability is shaky, after losing the senate the government is now seeking to co-operate with the IMF over debt restructuring as the country looks end its crippling debt crisis, which bodes well for the macroeconomic environment.
the publisher’s Construction in Argentina - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information and insights into the Argentine construction industry, including -
This report provides a comprehensive analysis of the construction industry in Argentina. It provides -
The industry is expected to register an annual average growth of 2.6% from 2022 -2025, supported by investments on transport, energy, water, residential, education and healthcare projects. In September 2021, the government submitted the ARS13.3 trillion (US$133.4 billion) draft budget to the Congress. The budget includes an allocation of ARS434.3 billion (US$4.3 billion) towards the Ministry of Public Works. Previously, in August 2021, the Ministry of Public Works reported that it is executing over 2,530 projects in 23 provinces and the city of Buenos Aires. In addition to these, the ministry has another 1,366 projects in the evaluation or approval stages.
A downside risk to the Argentine construction industry could arise from the major macroeconomic imbalances, including growing fiscal constraints, sovereign debt issues, a falling peso and rising inflation; this is likely to limit much-needed foreign and private investment. In addition, Inflation, a weakening peso and supply side bottlenecks will undoubtably drive up costs in the value chain and likely hinder major construction projects in the forecast period. According to the INDEC, the Construction Cost Index in Greater Buenos Aires rose by 3% in September 2021, compared to the previous month. This growth was driven by an increase in both labor and material costs. Although macroeconomic stability is shaky, after losing the senate the government is now seeking to co-operate with the IMF over debt restructuring as the country looks end its crippling debt crisis, which bodes well for the macroeconomic environment.
the publisher’s Construction in Argentina - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information and insights into the Argentine construction industry, including -
- The Argentine construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Argentine construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Argentina. It provides -
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Argentina, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
