Construction output in South America is due to grow 5% in 2022, reaching $546bn, up from $519bn 2021, according to economic analyst GlobalData.
The rise will follow a dip of 13% last year, which GlobalData says was due to the impact of Covid-19.
Argentina, Brazil and Peru’s economies surpassed pre-pandemic output levels in 2021, and Mexico is due to reach pre-pandemic levels by 2025.
Jack Riddleston, a GlobalData economist, said: “After a sharp fall in output, a low base effect combined with fiscal stimulus and accommodating monetary policy spurred a strong recovery in construction output over 2021.
“The fiscal response to the pandemic largely separated countries in the region as public works soaked up much of the losses to the private sector.
“Continued growth in public works and accelerated investment in energy and primary industry construction will drive growth into 2022. However, the faltering macroeconomic environment, monetary tightening and the withdrawal of fiscal stimulus will put downward pressure on construction output growth.”
More information is available in GlobalData’s Construction Market Size, Trends and Growth Forecasts by Key Regions and Countries, available here.