The construction sector performed more moderately than expected in 2024, registering a 2.2% growth, below the 3% projected with figures up to October, the Peruvian Chamber of Construction (Capeco) reported after presenting its most recent Economic Report on Construction (No. 85).
The slowdown became more evident in the last quarter, especially due to the declines registered in November and December, which impacted the final projections.
In November, the sector fell for the third time in 2024 (2.4%), after four consecutive months of growth. The previous decreases were registered in March (2.5%) and June (2.4%).
Despite this performance, public investment played a crucial role and, despite contracting in the last two months of 2024, recorded a 10.5% increase, Capeco stated.
There was also an expansion in Public-Private Partnerships (170%), Works for Taxes (20% more than the total of the last 6 years), mortgage loans (18.3% in amount), and employment in construction (10.9% in Metropolitan Lima).
The consensus among public entities and private consultancies points to a 3.5% rise in the construction sector's Gross Domestic Product (GDP) for 2025.
Public works are expected to grow by around 4.5%, according to the
Central Reserve Bank (BCR),
while cement consumption might experience a 3.2% rise, which would imply a rebound in private investment, particularly in the housing market, the guild indicated.
In the long term, construction growth would be supported by private investment, which is expected to reach a meager increase of 9.3% in the 2024-2026 period.
"For the country to be competitive and inclusive, private investment would need to grow by 9% per year and not every three years," Capeco Executive-Director Guido Valdivia added.
Although the construction sector faces challenges overall, the housing market looks promising for 2025.
Non-social housing, with sufficient supply and balanced prices, and social housing, with enough resources to grow, drive this positive expectation.