Dublin, Aug. 15, 2023 (GLOBE NEWSWIRE) -- The "Brazil Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Brazil is expected to shrink by 1.7% in real terms in 2023 and 0.8% in 2024, owing to subdued investor and consumer confidence amid elevated inflation rates, interest rates, and construction costs, coupled with ongoing weakness in the residential sector.
According to the Brazilian Economic Institute of the Getulio Vargas Foundation (FGV/IBRE), the average National Construction Cost Index (INCC-M) rose by 7.9% year on year (YoY) in the first five months of 2023, owing to a rise in the prices of both labour (11.6% YoY) and materials, equipment, and services (4.7% YoY). Adding the industry's woes, in May 2023, the Ministry of Planning and Budget reported that the federal government will be blocking expenses worth BRL1.7 billion ($333.2 million) in 2023, to comply with the spending cap rule. Six ministries will be affected by the budget block, with the highest funds being blocked for the Ministry of Cities and the Ministry of Transport. Although the block is temporary and may be reversed in the coming months based on improvement in government revenue, it is likely to affect the progress of public infrastructure projects in the transport and social infrastructure sectors.
The Brazilian construction industry is expected to rebound at an average annual growth rate of 3.3% from 2024 to 2027, supported by investment in the transport, renewable energy, housing, and oil sectors. The government is seeking private sector investment commitments worth BRL300 billion ($58.8 billion) in highways by the end of 2026, under a new concession model. This is a sharp increase compared to the former President Jair Bolsonaro's administration, which had awarded seven highway concessions worth BRL49 billion ($49.6 billion) from 2019 to 2022.
Forecast-period growth in the industry will also be supported by the government's plan to increase its domestic oil production to 5.4 million barrels per day (mb/d) by 2029 and overtake Canada as the world's fourth-largest oil producer by that year. According to a survey conducted by the Brazilian Association of Independent Oil and Gas Producers (ABPIP) in December 2022, Brazil's small- and medium-sized oil firms are planning to invest approximately BRL40 billion ($7.8 billion) in onshore fields by 2029.
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.
This report provides a comprehensive analysis of the construction industry in Brazil. It provides:
- Historical (2018-2022) and forecast (2023-2027) 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
For more information about this report visit https://www.researchandmarkets.com/r/9tdx4j
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