SOUTH AMERICA (South America is predicted to see zero or negative GDP growth for the 2nd Q of 2021):
COVID appears to be getting worse in some South American countries. Brazil is seeing more than 4,000 COVID related deaths each day, with more than 12 million confirmed COVID cases & over 300,000 deaths. Brazil accounts for 25% of the world’s daily COVID-19 fatalities, many experts warn the worst may lie ahead.
Chile has seen close to 1 million COVID cases & more than 22,000 deaths so far. In spite of launching the world’s fastest COVID-19 vaccination campaign, Chile has been forced to announce strict new lockdowns as it plunges deeper into a relentless 2nd wave of COVID cases which is stretching the medical resources & intensive care capacity.
Argentina, Peru, Colombia & other South American nations have been hard hit in the last 12 months with the COVID pandemic, it could take more than 6 months until some relief is experienced.
COVID-19 in South America will be prevalent for at least the next 6 months to 12 months, it will hopefully slowly start to fade into the background by the end of 2021. The long-drawn-out & disjointed rollout of vaccination programs is a serious challenge in many South American countries that could take more than 6 months to see positive results.
South American construction activity & projects have (for the most part) gradually started to resume again. Peru, Ecuador, Guyana, Uruguay, Venezuela & Paraguay have unfortunately been severely impacted by the pandemic. In Brazil construction work generally did not stop. However, each region dealt with the crisis in different ways.
Look for South America’s construction sector to struggle for the 2nd Q of 2021. The COVID-19 virus will reduce future CAPEX spending for the foreseeable future, conceivably going well into 2021 and beyond. Many countries in South America lack intensive care units / isolation wards or adequate numbers trained specialist healthcare workers & advanced medical equipment & supplies to fight off the pandemic.
The jury is still out on the global economic impact of the COVID-19 Pandemic, possibly six months from now we will have a clearer understanding of how we get past this event & how it impacts the construction sectors of all the South American countries.