Argentina Infrastructure Report Q4 2015
BMI View: We forecast a return to growth for Argentina's construction industry at 3% in 2015, partly as aresult of low base effects and an investment drive prior to the October presidential elections. Should a morecentrist government be elected, we expect a rise in private investment in infrastructure and a diversificationof the current competitive landscape, which is largely weighted towards by Chinese and Russiancompanies.
Key Trends And Developments
Our Country Risk team forecasts Argentina's economy to grow by a moderate 0.1% in 2015, following0.4% real GDP growth in 2014. Weak gross fixed capital formation (GFCF) will limit the extent ofgrowth in the construction industry.
However, after a new government is inaugurated in 2016, we expect GFCF will return to real expansion.Businesses will begin construction of fixed assets as expectations for more business-friendly policies,such as tax incentives for investment, are implemented. Further, the end of Fernández's administrationwill improve perceptions about the Argentine government. Reduced restrictions on imports and aweakened peso will reduce the cost for foreign businesses looking to expand in the country'sinfrastructure sector.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook