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Construction sector grew 2.0% in August, according to Capeco

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The construction sector would have grown 2.0% in August, thus achieving a full semester of positive scenario, according to Guido Valdivia, executive director of the Peruvian Chamber of Construction (Capeco).

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“The positive result obtained by the construction sector in July and August is based on the significant increase of more than 20% in the execution of state works, and in a decrease in cement consumption of 3.8% in July and 4.5% in August”, said the spokesperson for the business association during the presentation of the Construction Economic Report – IEC No. 57.

He also added that between September 2021 and August 2022, there is an increase in production of only 0.3%, as a result of a rise of barely 1.3% in cement consumption and a 3.4% contraction in the progress of public works.

Informal employment in construction falls

On the other hand, Valdivia highlighted that in the June-August moving quarter of this year, formal employment within the construction sector grew 8.6% in metropolitan Limawhile informal employment fell -6.5% compared to the result for the same period in 2021.

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This may mean that informal investment no longer grows, that is why it employs less (workers). In addition, revenues rise and this implies that there is a position of slowdown of informal works that more or less are 20% of the GDP of construction”, he commented.

Between the sixth and eighth month of the year, revenues in the construction sector also grew by around 20% compared to what was recorded the previous year; meanwhile, the number of hours worked increased by 5%. “This is a reflection that there is a greater formality,” she mentioned.

Perspectives for construction in the coming months

The growth of the construction item would be 2.0% and 2.3%, according to the forecasts of the Central Reserve Bank of Peru and the Ministry of Economy and Finance, respectively.

The BCRP forecast is driven by a 2.1% growth in public works during 2022, while the MEF forecast an 8.5% expansion in the sector.

“Construction would have to grow 64% more than in the first seven months in order to reach the figure that the BCRP is talking about,” Valdivia said.

Source: Larepublica

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