|
|
Argentina Infrastructure Report Q1 2010Published by: Business Monitor International Published: Nov. 10, 2009 - 61 Pages Table of Contents
AbstractThe country's construction industry has been hit especially hard by the economic downturn. According tothe national statistics agency, Indec, construction activity in the country fell by a seasonally adjusted7.2% in July 2009, compared with July 2008. However, there were signs of improvement on a month-onmonthbasis, as construction activity grew by 0.9% in July 2009 compared with June, according to theWall Street Journal. For August 2009, the year-on-year (y-o-y) decline in real construction sector activitywas 3.2%, on a seasonally adjusted basis. The month-on-month performance showed a rise of 1.8%,according to Indec. As such, data for these two months appeared to show that the sector may be starting tostabilise. However, broad economic data remained extremely weak, as the economy as a whole contractedby 0.8% in real terms in Q209, according to Indec.Against this backdrop, there is no change to our core forecasts for Argentina’s construction industry thisquarter. BMI estimates a contraction in the real value of the construction industry of 3.4% in 2009. Wealso continue to expect an even deeper contraction in 2010, owing to the structurally weak condition ofArgentina’s economy and concerns about the viability of the government’s spending plans. Indeed, weanticipate a further downward plunge in real construction sector output in 2010, with -5.3% growthforecast. Despite significant plans for infrastructure investment by the government, doubts remain as to how farsuch plans are viable, given the negative impact of the economic downturn on an already-strained fiscalsituation. Alongside funding concerns, further doubts about the government’s ability to push through itsinfrastructure spending plans were raised by a poor showing in mid-term elections in June 2009, whichsaw the administration of President Cristina Fernandez suffer embarrassing defeats (including the loss byher husband, ex-President Nestor Kirchner, of Buenos Aires province). This electoral defeat may increaseopposition to the use of the public purse - including the possible use of US$26bn in proceeds from acontroversial nationalisation of the private pension system - for ambitious infrastructure spendingprojects. Argentina’s Roggio presented a proposal to build a subway in Cordoba to the city’s authorities, accordingto Business News Americas writing in August 2009. The plan would require US$1.25bn of investment,according to the company, including around US$1bn on stations and US$200mn on rolling stock. Thefirm calculates that the subway could carry over 200,000 people per day on working days. The projectwould involve four phases, if approved by the authorities. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||