Construction activity grew by 5.3% between January and May compared to the same period last year, according to the Peruvian Chamber of Construction (Capeco). This was due to the significant progress of public works by 19.6%, rebounding with six consecutive months of growth, despite the fact that cement consumption decreased by 1.9%.
In that sense, we see that the trend continues and, as advanced The Republic In the April GDP report, public spending was also the main driver of the sector at the beginning of the second quarter of 2024.
According to figures from the Ministry of Economy and Finance (MEF), at the end of May S/16,390 million of the state works budget had been executed, a record amount that implies an increase of 31.7% compared to the same period last year. The investments would have occurred in 72.7% for the regions, 35.5% for the municipalities and 14.1% in the national government.
Guido Valdivia, director of Capeco, points out that private investment levels are around 2.3% and that this would be insufficient to boost the sustainability of the economysome of the obstacles being the informal market and the drop in subsidies from housing funds, despite the fact that its price rose more than estimated (1.2 percentage points) in the last semester.
“In the face of the fall in private construction by more than 7% at the end of 2023, the estimates for this year are short and this impacts the construction sector negatively. The main factors would be the informal market and the fall in social housing programs, which from June 2023 to May 2024 decreased by 32%,” he added.
However, companies hope to close 2024 by increasing their operations by 4%.
Source: Larepublica
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