Construction in Nicaragua: Pessimism at the End of 2020

Since the beginning of the political crisis in 2018, the activity began to decline, the trend continued in 2019 and by 2020 the expectation is that the fall in investments in the sector will be more acute, mainly private ones.

Tuesday, November 10, 2020

Official data indicates that between 2017 and 2018 investment in private construction projects decreased by 17%, from $1,106 million to $914 million. Between 2018 and 2019 the amount invested continued to fall, going from $914 million to $469 million, which is equivalent to -48% variation.

In the case of public sector construction, it has also contracted, as for the period 2017-2018 the amount invested fell from $879 million to $814 million, which represents a drop of 7%. For the period from 2018-2019, investments fell by 19%, from $814 million to $657 million.

Learn about the "Feasibility studies of real estate projects" that we carried out in CentralAmericaData.

For this year, the expectations that the construction industry will recover are not very encouraging, since the crisis that caused the spread of covid-19, could worsen the complex situation of the sector.

Leslie Martinez, president of the Chamber of Construction, told Laprensa.com.ni that "... for now it is the public sector projects that would be preventing a greater contraction of activity, but the problem is that as time goes by these investments are also decreasing and are the ones being financed by multilateral organizations."

See "Residential Construction: More than $1 Billion Projects"

Martinez added that "... as a result of the pandemic the sector has fallen to a level never seen before, as it is considered that private investment has decreased with respect to what was in 2018 between 90% and 95% and public investment has decreased by 50%, because dragging projects continue."

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