BMI View: We have upgraded our forecasts for construction sector real growth in 2017 and 2018 to 6.1% and 4.6% respectively as major government investment will drive a recovery in construction activity following a contraction of 11.3% in 2016.
Forecast & Industry Developments
Given that the government's stimulus programme achieved better-than-expected results in H117 and that following their successful tender, a number of infrastructure projects are to be executed over the next several years, we have revised upward our forecasts for construction industry growth in 2017 and 2018.
We now expect growth of 6.1% in 2017, up from 2.4% previously, and 4.6% in 2018, up from 4.4% previously.
On June 16, Transport Minister Guillermo Dietrich indicated that the government planned to move forward in H217 with a number of PPP tenders, the first to be launched since the passage of a PPP law in 2016. Projects to be tendered include a USD2bn concession to build and operate a new port facility in Buenos Aires and seven roadway operation and expansion concessions requiring USD3.9bn in investment.