South America

The 12 countries that constitute South America will have a combined construction market of $220 to $280 billion in 2026. Many South America countries have received Government funding / stimulus grants related to mew 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. South America’s construction forecast for 2026 is reasonably positive, with unbalanced growth in some countries, propelled by infrastructure roads, bridges and energy related facilities and new AI related data centers.

The U.S. military launched significant military strikes in Venezuela on January 3, 2026, codenamed “Operation Absolute Resolve,” capturing President Nicolás Maduro and his wife, Cilia Flores, on drug-trafficking and terrorism charges. Maduro is now in custody in New York City and is facing a trial that could take 12 to 18 months to resolve.  It appears that 75% of the Venezuela population are really pleased with this event. Will it influence Latin America construction activity in Venezuela, Colombia, Chile and Peru?  It is too soon to tell.

Brazil continues to be economically the #1 country in South America, while other countries like Argentina, Uraguay, Colombia and Chile are set to see an increase in construction activity in 2026. Brazil’s construction market is forecast to grow by 3,2% to 3.7% in the 1st Q of 2026. Brazil’s left leaning President is said to be wary of the 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 right leaning President. The Brazilian construction sector is estimated to be a $130 to $180 billion market in 2026.

The standoff between the US and Venezuela could be a major problem as we move further into 2026.

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.

Chile & Colombia are both experiencing reasonably high inflation rates as we move into 2026. 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 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.