Good Outlook for Panamanian Construction

Residential construction is expected to perform well and public infrastructure investment will be maintained.

Tuesday, March 13, 2012

The construction industry closed 2011 in a very good state, marked by a growth of 18.5% and having contributed $1.42 billion to GDP.

Asked about what to expect for 2012, Elisa Suarez Gomez, Executive Director of the National Housing Advocates, said the affordable housing and middle class sectors will perform well, thanks to the expanded preferential interest program. In this program, the state supports first-time homebuyers, covering a percentage of the interest charged by the bank. Currently the program includes only houses worth up to $80,000, but this will be expanded to $120,000.

The public sector will maintain its investment in infrastructure, with the extension of the Canal and the Metro being the most noteworthy projects. The latter has a planned expenditure of $581 million during 2012, 32% of the total project.

In terms of employment, at the end of 2011 there were 168,314 workers, and by 2012 Manpower expects a net trend of 21%, based on "optimistic hiring plans for the first months of the year," explained Luis Fernando Gonzalez, regional manager for the recruiter.

In conclusion, the article in laestrella.com.pa identifies the main challenge as being the pressure that the prices of raw materials will put on the sector.

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Expanding to $150.000 the range of homes with preferential interest and guaranteeing real estate leasing are two of the changes that could boost a recovery of activity in Panama.

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Guatemala: Good Signs for Construction

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In 2013, growth is expected because of the wholesale execution of public works, reconstruction of infrastructure damaged by the earthquake, and better financial conditions.

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Better Prospects for Construction Sector in Nicaragua

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Nicaraguan businessmen from the construction industry forecast a growth of 20% by 2012.

According to the Nicaraguan Chamber of Construction in the first six months of the year alone, there was a 10.5% increase in the sector.

"Benjamin Spears, president of the Nicaraguan Chamber of Construction (NCC), said that housing projects, especially in the social interest segment, are the main factor accounting for the growth.

Guatemalan Construction Industry with better perspectives

February 2012

Employers in the construction industry forecast a 4% growth in 2012

The Chamber of Construction in Guatemala noted that this year they expect industry growth of 4%, the beginning of the revival of that sector.

The president of the Chamber of Construction, Jorge Montenegro, recognizes that the market after a slump of several years, is finally seeing an improvement.

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