South America

The 12 countries that constitute South America will have a combined construction market of $220 to $280 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 2026.

Brazil’s construction market is forecast to grow by 2% to 3% in the 4th Q of 2025, not that great for a future powerhouse country. Brazil seems to continually have political challenges; its left leaning President is said to be wary of the new US Trump administration. 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 US new right leaning President.

The Brazilian construction sector is estimated to be a $130 to $160 billion market or close to 6.5% to 7.7% of the country’s GDP. Construction related inflation / escalation inflation in Brazil is running close to 5.1% to 5.4%, which shows signs of moderating in the last 3 months.

Argentina is experiencing a major improvement to the construction inflation rate, which is now in the 20% and 35% range, this improvement is the result of a newly elected Government.

Reports from Venezuela indicate 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. A possible conflict with the US is possible, with the US navy destroying a number of so called “drug” vessels in the last month or two.

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 countries. 

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