South America

SOUTH AMERICA (South America is predicted to see minimal GDP growth in the 2nd Q of 2022):

It appears 2022 will be a challenging year for the South American construction industry. The impact of the new COVID-19/OMICRON strain on the construction sector has yet to be determined as we move into 2022, plus the added challenge of ongoing Russia – Ukrainian conflict will put a damper on future economic and construction sector growth.

The impact of COVID/OMICRON is improving. The pandemic appears to be getting better in most South American countries. 

Brazil’s construction-related inflation was 11% to 13% in March, the largest increase in more than 20 years. Chile, Peru, and Argentina are experiencing higher inflation as we move into 2022, and unfortunately, this will impact construction costs.

South America has millions of citizens that have not yet been vaccinated. This remains a serious problem that still needs to be resolved.

The jury is still out on the Russia – Ukraine conflict. Possibly in three to six months from now, we will have a clearer understanding of how we can get past this event and how it will impact the construction sectors of all the South American countries.