Civil construction sector will grow by 4.5%, analysts point out

Forecast is based on investments in housing programs, interest rate drop, country’s economic recovery, resumption of infrastructure works, among other factors

The construction sector has good perspectives for the coming months, driven by real estate works, reinforcement of Minha Casa, Minha Vida [My house, my life] Program, and by infrastructure projects. According to the Obramax Study, after construction companies already reached historic revenues of R$ 179.6 billion in 2013 and then plummeted to R$ 49.6 billion in 2017, little by little growth has been resumed. In 2019, the sector showed a good recovery, reaching R$ 58.9 billion, and in 2021, year with the most recent data, the volume increased and reached R$ 68.3 billion.

For 2023, according to consulting company Prospecta Analytica, the forecast is a 4.5% growth in civil construction, due to Brazil’s economic recovery, the slowdown in material costs and also the market’s mood after the pandemic. This index also considers the investment of R$ 10 billion announced in January for Minha Casa, Minha Vida program by the Ministry of Cities, but the practical results of this financial contribution will only begin to be seen in the second half of 2023.

The positive expectations reinforce confidence in sales increase of equipment for concrete. Gian Romano, commercial manager of concrete technology at Liebherr Brasil, believes that 2023 will be a challenging year, but with good opportunities. “We are optimistic that investments will happen in new construction projects,” he says.

Rodrigo Kazuma, manager of Zoomlion Brasil’s concrete unit, also shares this perspective, and believes in a possible increase in incentives for popular constructions and infrastructure projects by the federal government, with the continuity of ongoing projects.

“The real estate sector already has many projects launched and with works starting in 2023. For the infrastructure sector, we can highlight the subway works, the launch of the Intercities Train connecting São Paulo to Campinas, and new airport and port concessions. Finally, industrial, oil and gas, mining and agro sectors beckon with important new projects”, conjectures Rodrigo.

By: Santelmo Camilo