SOUTH AMERICA (South America is predicted to see minimal GDP growth in the 2nd Q of 2023):
The continuing increase in inflation/escalation that impacts food, energy, and commodities prices are a challenge to the South American economies and construction sectors.
Brazil’s political and economic situation appears to be improving. Inflation/escalation in Brazil is running close to 5.5%, which is an improvement from 6 months back.
Argentina is experiencing an inflation rate of between 70% and 90%, and reports from Venezuela that inflation is more than 100%! Chile & Colombia are both experiencing high inflation rates as we move further into 2023. Unfortunately, this will impact construction costs and future construction activity.
The smaller nations of South/Central America and the Caribbean, such as Bolivia, Peru, Paraguay, Ecuador, Panama, Dominican 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 counties.