South America

SOUTH AMERICA (South America is predicted to see minimal GDP growth in the 4th of 2022):

Inflation-related energy, oil, and food costs are impacting economic and construction growth across all 12 South American countries.

Argentina is experiencing an inflation rate of between 55% and 80%; reports from Venezuela that inflation is more than 100%. Brazil’s inflation was 9.5% in September, Chile and Colombia are both experiencing higher inflation as we move into 2023, and 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 really challenged by inflation and rising costs of construction-related materials.

It appears that the 4th Q 2022 will be a challenging period for the 12 South American countries and the South American construction industry. Colombia’s escalation rate is between 9% and 11%, Chile is currently experiencing between 11% and 13%, Peru is seeing 7.5% escalation, Argentina is experiencing as much as 60%, Ecuador is more than 12.5%, and Brazil 11.5%; not a good situation. 

Construction-related bulk materials and equipment such as copper (wire/pipe), structural steel, rebar, piping (PVC, CS, and SS), lumber/plywood, windows, doors, and instrumentation devices are rising once again in the last couple of weeks related to material shortages and an increase in freight/shipping costs.