SOUTH AMERICA (South America is predicted to see minimal GDP growth in the 4th Q of 2023):
South America’s construction sector remains stable and will experience minimal growth as we move into the 4th Q of 2023.
The Brazilian construction sector is estimated to be a $125 billion market or close to 6.5% of the country’s GDP. Brazil’s political and economic situation appears to be improving. Inflation / escalation inflation in Brazil is running close to 3.4% which is a big improvement vs. 3 months back.
Argentina is experiencing a skyrocketing inflation rate of between 60% and 80%, reports from Venezuela is that inflation is more than 100%. Chile & Colombia are both experiencing very high inflation rates as we move into Q4 2023 and unfortunately this will impact construction costs and future construction activity.
The smaller nations of South / Central America and Caribbean, such as Bolivia, Peru, Paraguay, Ecuador, Panama, Dominic Republic and Jamaica are challenged by inflation and rising costs of construction related materials.
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 South American counties.