Following an annual decline of 8% in 2023, the publisher forecasts the construction industry in Peru to grow by 5.1% in real terms this year, supported by improvements in transport and energy infrastructure, coupled with an increase in the public investments in the construction industry. According to the Peruvian Institute of Economics (IPE), following an annual growth of 9% in 2022, the public investment into construction activity recorded a real growth of 3.1% year on year (YoY) in 2023, to reach PEN50.5 billion ($13.2 billion) that year. Growth in 2024 will also be supported by a 12.1% increase in the government’s budget for 2024, to reach PEN241 billion ($64.5 billion) compared with the 2023 Budget. However, in the short term, the industry might reflect slowdowns owing to ongoing political instability, rising inflation, deterioration in investor confidence, coupled with rising construction material price in the country. According to the Instituto Nacional de Estadística e Informática (INEI), the average construction material price index grew by 1.2% YoY in the first nine months of 2023, preceded by annual growth of 11.5% in 2022.
Over the remainder of the forecast period, the publisher expects the construction industry to record an average annual growth of 3.7% between 2025 and 2028, supported by investments in mining, housing, electricity, and transport infrastructure projects. Growth over the forecast period will be supported by a portfolio of feasible mining projects that includes commencement of the construction works of six mining projects by the end of 2024, which involves a total investment of PEN26.3 billion ($6.9 billion). The government's portfolio of 47 mining projects worth PEN204.4 billion ($53.7 billion) of investments will further support Peru's construction industry's growth over the forecast period.
Over the remainder of the forecast period, the publisher expects the construction industry to record an average annual growth of 3.7% between 2025 and 2028, supported by investments in mining, housing, electricity, and transport infrastructure projects. Growth over the forecast period will be supported by a portfolio of feasible mining projects that includes commencement of the construction works of six mining projects by the end of 2024, which involves a total investment of PEN26.3 billion ($6.9 billion). The government's portfolio of 47 mining projects worth PEN204.4 billion ($53.7 billion) of investments will further support Peru's construction industry's growth over the forecast period.
The Construction in Peru - Key Trends and Opportunities to 2028 (H1 2024) report provides detailed market analysis, information and insights into Peru’s construction industry, including -
- Peru’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 Peru’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.
Scope
This report provides a comprehensive analysis of the construction industry in Peru. It provides -
- Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Peru, 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
Reasons to Buy
- Identify and evaluate market opportunities using the standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
