The Peruvian Chamber of Construction (Capeco) pointed out that, according to the INEI, the construction sector decreased by 9% between January and August. Furthermore, by the end of September, the company expects a contraction of 10.4%, which implies an accumulated 9 consecutive months of decline and the largest drop in recent months.
Among the reasons, it is estimated that for the ninth month of the year a decline in cement consumption of 12% is also expected, the thirteenth consecutive negative month, and a decline of 6.5% in the progress of public works. .
Likewise, there are other key factors that could seriously affect the growth of the sector, such as the El Niño Phenomenon, the Russian-Ukrainian war and the conflict between Israel and Palestine. The latter could affect the import of commodities such as oil and its derivatives, asphalt, PVC pipes and plastics, which are an important part of construction supplies.
“If the El Niño phenomenon occurs to a moderate degree, it will enter between November and March. So, It will take the last two months of 2023 and the first quarter of next. In the three previous phenomena, the material losses were US$3.5 billion,” said Guido Valdivia, executive director of Capeco, during the presentation of the Construction Economic Report No. 70.
It should be noted that, compared to last month, the price of steel increased by 0.8%, while that of cement was 0.3%.
Disbursements from the Mivivienda Fund would fall by 17%
The disbursements of the Mivivienda Fund would fall in a 17% by the end of the year compared to 2022, and only 11,212 loans are expected to be granted.
Likewise, outflows for September had a decrease of 27.2% compared to the same period last year, and 873 credits were delivered, the lowest figure in the last 15 years. In detail, supplemental financing for the Techo Propio program experienced a 28% decrease compared to last year, while construction at Sitio Propio reached 36 placements.
“Good news is that an additional S/100 million has been approved for the Good Payer Bonus,” added Valdivia.
Source: Larepublica
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