Construction in Argentina – Key Trends and Opportunities to 2018

Date: 2015-09

The Argentine construction industry increased in value, at a nominal compound annual growth rate (CAGR) of 21.55% during the review period (2009–2013). However, in real terms, the CAGR was only 3.54%, as a result of high inflation in the Argentine economy. This growth was supported by public investments in residential, infrastructural and commercial construction. Increased government investment, the adoption of a build-operate-transfer (BOT) model and private sector participation through public-private partnerships (PPPs) helped to increase infrastructure construction activity. Industry growth is expected to continue over the forecast period (2014–2018) as a result of the government’s focus on infrastructure and residential construction, improved investor sentiment, and an anticipated recovery in the global economy. The industry is anticipated to post a forecast-period CAGR of 22.53%. However, with high inflation in the country, the industry’s output growth rate in real terms is expected to be lower over the forecast period.

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