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Construction sector would have grown 5.8% in October, according to Capeco

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Since March 2022, the construction sector has been presenting a favorable performance due to the increase in Public Works, The GDP of construction activity grew 3.1% in September, according to data from the National Institute of Statistics and Informatics (INEI). In that line, it is estimated that for October this item could increase by 5.8%, According to the latest Economic Report of the Construction of the Peruvian Chamber of Construction (Capeco).

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“The sector accumulated seven consecutive months of growth and four in which sectoral production increased more than the economy in general, becoming the fifth productive branch with the best performance in the ninth month of the year, behind accommodation and restaurants (10.2% ); transport, storage, mail and courier (8.7%); other services (4.9%); and electricity, gas and water (4.6%)”, said Guido Valdivia, executive director of Capeco.

However, Valdivia indicated that the construction GDP would fall or have a slight setback at the end of this year. Likewise, by 2023 it must be taken into account that public works —whose progress favors the sector— may be affected by the start of management in local and regional governments.

“If we analyze the trend at the level of the last 12 months, we do not believe that there will be growth in the sector this year and there will probably be a slight drop,” Valdivia reiterated.

Public works reached record growth in 2022

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Public works have presented an increase of 14.2% compared to the first 10 months of 2021, which represents the highest increase since August of last year. This favorable performance is due to the fact that between January and October 2022, the execution of public works reached S/ 31,112 million.

Similarly, investment by subnational governments increased by 26.3%, while that of the central government contracted by 1.6%. In addition, the municipalities and regions concentrated 62.7% of the state investment made up to October. This would be his second best result in the last eight years.

For its part, the national government invested 60.4% of the available resources, while at other levels of government this indicator stood at around 44%.

It should be noted that the efficiency of the execution of the works reached only 48.8% between January and October of this year, which is 1% less than in the same period of 2021. Likewise, the consumption of cement presented a sharp drop of 2.4%.

Source: Larepublica

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