Central America Infrastructure Report Q2 2014

Business Monitor International
March 19, 2014
112 Pages - SKU: BMI5217938
Countries covered: Central America

Central America Infrastructure Report Q2 2014

BMI View: We see high risks, small scale and limited growth opportunities across the region as a whole. Acrucial factor underpinning our forecasts for infrastructure investments in future years is political risk. Onthe one hand there is Panama and Costa Rica, while on the other, characterised by high levels of violenceand security threats, income and social inequality, pervasive corruption and divisive political environment,are El Salvador, Honduras, Guatemala and Nicaragua. Local and regional companies, as well as Chineseconstruction companies, will be most likely to benefit.

Central America presents a range of small scale opportunities across the infrastructure and widerconstruction sectors as infrastructure deficits across the region are addressed. However, it also posessignificant risks. Home to deep-run corruption, high crime rates and unsophisticated institutions, thegenerally small industry sizes offer little to make those risks palatable. However, we do see sporadic growthopportunities, and highlight ports, airports, power and social infrastructure as the areas that could show thegreatest pace of growth.



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