Costa Rica: Construction Lacks Public Investment

The drop in state construction this year has worsened the sector's situation, already troubled since the beginning of the financial crisis in 2008.

Monday, August 2, 2010

The completion of large projects and the lack of funds to begin projects are two of the reasons for the slowdown in public sector construction.

"Private construction, hard hit by the crisis, is also still falling but at least at a slower pace than last year," reports Nacion.com.

The results of the Monthly Index of Economic Activity (IMAE) published by the Costa Rican Central Bank led Randall Murillo, director of the country's Construction Chamber, to predict that the sector will not experience an appreciable recovery until 2012.

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Nicaragua: Public Investment Collapses

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Partly because of the government's reduced availability of resources from domestic sources, public investment in the first three months of the year totaled $87.7 million, 52% less than in the same period in 2018.

According to reports from the Ministry of Finance and Public Credit, the Public Investment Plan (PIP), which includes projects for the construction, expansion and rehabilitation of infrastructure, decreased by $95.7 million between the first quarter of 2018 and the same period of 2019, from $183.4 million to $87.7 million.

Guatemala: Uncertainty in Construction Sector

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Fiscal reforms and the lack of resources for public investment have generated great uncertainty in the sector, coming at the same time as a shrinking of construction projects for housing and public infrastructure.

This was despite the Bank of Guatemala (Banguat) having forecasted growth of 7.7%.

Guatemala: Lack of Public Works Affects Construction Sector

August 2010

The lack of state resources to pay contractors means public works remain paralyzed.

In addition to this the private sector continues to struggle with less houses being built in recent months.

"The Monthly Index of Construction Activity (Imacon) for May reveals that the sector recorded a drop from 81.4 to 64.2, its lowest level since March 2002, according to the Guatemalan Chamber of Construction (CGC)," reports Elperiodico.com.gt.

$700 million for public investment in El Salvador

February 2009

Despite the electoral year and the economic crisis, public investment projects will continue, indicated Eduardo Ayala Grimaldi, technical secretary of the presidency.

According to Elsalvador.com: "About $700 million is budgeted for investment. Part of the monies had been set aside in the last budget and passed on to the one for 2009, not because the works did not start, but because they were tendered at the end of the year," Ayala Grimaldi said as a justification for the public construction projects that were outstanding from last year."

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