Key Trends and Opportunities in the Brazilian Construction Market to 2025: Despite Ongoing COVID-19 Crisis, 4.1% Growth is Forecast for 2021 and 3.6% for 2022 – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Construction in Brazil – Key Trends and Opportunities to 2025 (Q2 2021)” report has been added to ResearchAndMarkets.com’s offering.
Brazil’s construction output is now forecast to grow by 4.1% in 2021 and 3.6% in 2022, following a decline of 7% last year. The government’s housing program, “Casa Verde e Amarela”, as well as planned concessions by the end of next year, are expected to support investment and growth in the industry in coming years.
In April 2021, several construction companies were granted nearly BRL53.6 billion (US$10 billion) in concession projects, which include 22 airports, five ports, a railway line that will connect Brazil’s east coast with the western agricultural area and a series of road projects. Vinci, the French construction, and concessions company won seven of the 22 airport concessions, while Brazilian companies won the remainder. Brazil’s infrastructure minister, Tarcisio Gomes de Freitas, said in May that he expects a BRL267.8 billion (US$50 billion) investment boom in the development and modernization of the country’s roads, rail, airports, and ports by 2022, driven by concession projects.
Despite the country’s ongoing COVID-19 crisis, the latest data from the Brazilian Institute of Geography and Statistics (IBGE) indicated that Brazil’s construction industry performed much better than previously anticipated in Q1 2021, with output (in seasonally adjusted terms) posting a quarter-on-quarter (Q-o-Q) rise of 2.1%, up from -0.2% in Q4 2020. This brought activity closer to its pre-pandemic (Q4 2019) levels and is set to provide a strong carryover into the Q2 2021 figure. However, there are concerns for this growth to be sustained over the course of the year of the due to the continued shortage and increase in the price of building materials, as well as uncertainty over the duration and behavior of the virus.
In addition to the shortage and rise in the price of construction materials, growing political and fiscal risks ahead of next year’s presidential elections are expected weigh on activity in 2022, and further undermine the government’s efforts to facilitate more foreign and private sector investment in the country.
According to a survey carried out by the Federal Court of Accounts (TCU), Brazil currently has a stock of more than 14,000 paralyzed public works, largely due to delays in the approval of budgets and non-compliance with payment obligations by the public administration.
This report provides detailed market analysis, information, and insights into Brazil’s construction industry, including:
- Brazil’s construction industry’s growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Brazil’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Brazil, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
For more information about this report visit https://www.researchandmarkets.com/r/t565l3
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