Argentina Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

Argentina Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

Summary

The construction industry in Argentina is expected to have declined by 1.2% in real terms in 2023, owing to rising construction costs, falling building permits, and political uncertainty. According to the National Institute of Statistics and Census of Argentina (INDEC), the total area authorized for building permits by 176 municipalities fell by 11.4% year on year (YoY) in the first eight months of 2023, preceded by an annual decline of 9.3% in 2022. According to the INDEC, the construction value add declined marginally by 0.1% YoY in Q3 2023, preceded by Y-o-Y growth of 1.5% in Q2 and 2.9% in Q1 2023. However, in a positive development, in December 2023, the Development Bank of Latin America and the Caribbean (CAF) approved a short-term loan of ARS221.3 billion ($960 million) for Argentina, to help the country meet debt obligations with the International Monetary Fund (IMF).

The forecast-period outlook is clouded by uncertainty. Although the current forecast is for steady growth, there are major downside risks, given the potential for major policy changes, with the new president, Javier Milei, pledging to cut public sector projects, and push through other radical policies, including moves in mid-December to devalue the peso by 50%. There have been some positive developments recently though. In early September 2023, Posco, South Korean steel company, announced its plan to invest ARS391.9 billion ($1.7 billion) for the construction of two lithium carbonate production capacities in the provinces of Salta and Catamarca. Furthermore, in late September 2023, Vista Energy SAB de CV, shale oil producer in Argentina, announced its plan to invest ARS576.3 billion ($2.5 billion) for the construction of 138 new shale oil wells in the country between 2024 and 2026. The construction industry’s growth over forecast period could also be supported by the proposed investment of ARS20.7 trillion ($90 billion) by the previous government to produce at least five million tons (Mt) of low-emission hydrogen per year by 2050, through its National Hydrogen Strategy (ENH), which was launched in early September 2023. As part of plan, the country will install 55GW of renewable electricity generation capacity, 30GW of electrolysis capacity, and construct hydrogen production hubs and improve road infrastructure.

The report provides detailed market analysis, information and insights into Argentina’s construction industry, including -

• Argentina’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 Argentina’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 Argentina. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Argentina, 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 GlobalData's 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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.