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Venezuela Infrastructure Report 2014

Venezuela Infrastructure Report 2014 Market: New market analysis published


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2014-02-07 21:15:01 - Venezuela Infrastructure Report 2014 - a new market research report on companiesandmarkets.com

We have revised down our forecasts to reflect a more aggressively deteriorating environment in Venezuela´s construction sector. Although we anticipated a substantial decline in industry growth in 2013, we are now estimating a recession for the year, which we believe will persist until 2015. High input costs, a weakening government fiscal position and an unattractive environment for private investors mean there will be few sources of growth for the industry until fundamental economic and political changes take place.

As anticipated, 2013 has been the start of a steep deceleration in growth in Venezuela´s construction industry. We are now estimating a contraction of 3.9% for the year, and we believe negative growth will persist through to 2015 (-2.1% in 2014, and -0.6%

 

 

in 2015). A slimming project pipeline in the infrastructure sector, partly due to growing fiscal pressure on the government, will see current major projects draw to a close with few new on the horizon. Growth is also being eroded by a scarcity of inputs and high costs. However, we anticipate that the government will continue to prioritise social spending programmes including the Great Housing Mission (GMVV).

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