After that in January of this year the Domestic Gross Product (GDP) of construction registered a fall of 11.7%, said sector would not show a recovery and would have a contraction of 12.3% in last February, according to forecasts by the Peruvian Chamber of Construction (Capeco).
In detail, public works would continue with its good performance since June 2022 and would have had a growth of 22.4% during the second month of the year, while internal cement consumption would continue to be negative and a decrease of 17 is projected. % in February.
“Our estimate is a 12.3% drop in the month of February. We continue with public works growing at double digits like 10 months ago and cement consumption accumulates six months downwards and, in this case, even with a record number: 17% down,” said Guido Valdivia, executive director of Capeco during the presentation of the Construction Economic Report (IEC) of the construction union.
In this sense, companies construction companies revealed that their operations decreased by 3.7% in the first two months of the year compared to the same period in 2022. In detail, infrastructure companies claimed to have a 4.8% drop in their production level; followed by builders (-4.3%) and suppliers (-1.9%).
Nevertheless, The companies in the sector expect that between March and April the level of their operations will grow just 0.2%according to the expectations survey carried out by the construction union.
Impact of the rains
According to Valdivia, the intense rainy and huaicos also impacts the construction sector as has happened in previous years when these natural phenomena occurred. He added that while there will be a process of reconstruction of damage to the affected infrastructure, the benefits of these efforts would only be reflected next year.
“It is true that construction generally benefits in some way when there is a reconstruction process but, as experience shows, this comes the year after the natural phenomenon occurred. In the year in which it occurs, generally, there are a great drop in the level of operation of the construction sector”, affirmed the union representative.
Source: Larepublica
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