The 12 countries that constitute South America will have a combined construction market of $220 to $275 billion in 2025. Many South American countries have received Government funding / stimulus grants related to new infrastructure projects in the last 12 months. South America’s construction sector remains somewhat stable and will experience minimal growth as we move into 2025.

Brazil continues to develop its’ bounteous offshore O&G, timber, crops, ethanol, hydroelectricity / energy & aircraft production. Brazil is Latin America’s largest economy; it is a member of BRIC’s it will be interesting to see the reaction of Brazil’s left leaning Government with the USA right leaning President.

The Brazilian construction sector is estimated to be a $130 to $150 billion market or close to 6.5% of the country’s GDP. Brazil’s political and economic situation appears to be in a state of flux. Construction related inflation / escalation inflation in Brazil is running close to 3.8% to 4.6%, which is a big improvement to 12 months back.

Argentina is experiencing a major improvement to the construction inflation rate, which is now in the 15% and 25% range, this improvement is the result of a newly elected Government.

Reports from Venezuela that inflation is more than 100% per year. Chile & Colombia are both experiencing reasonably high inflation rates as we move into 2025 and unfortunately this will impact construction costs and future construction activity.

Construction related bulk materials and equipment such as copper (wire / pipe), structural steel, rebar, piping (PVC, CS & SS), lumber/ plywood, windows, doors and instrumentation devices are starting to moderate in most counties.

The smaller nations of South / Central America and Caribbean, such as Bolivia, Peru, Paraguay, Ecuador, Panama, Dominic Republic and Jamaica are challenged by high unemployment levels, inflation and rising costs of construction related materials.