El Salvador: Construction Activity Declines

The sector continues to operate within the restrictions that have been imposed, but at a slower pace, as it has adjusted its processes to the required health and safety protocols.

Thursday, March 26, 2020

Because of the public health threats caused by the covid-19 pandemic, the Government decreed a home quarantine a few days ago. However, some activities may continue to be carried out, provided they meet certain requirements.

You may be interested in "Construction and Impact of the Covid19"

Elmundo.sv reviews that "... The construction industry is adapting to the new reality presented by the risk of the Covid-19 pandemic. The sector, the most dynamic in the economy in 2019, adjusts processes, cancels others and delays projects, but rules out paralysis."

The article adds that "... The Salvadoran Chamber of the Construction Industry (Casalco) explained to El Mundo newspaper that there is a 'self-limitation in some types of works whose density is very high', which has led to a reduction in the rate of progress of some projects."

In 2019, construction was the fastest growing sector in the country, and the Gross Domestic Product recovered in the third quarter. The sector contributes 5% of the country's total production.

CentralAmericaData reports that it is predicted that the impact of the crisis of covid-19 in the construction sector in Central America will be mainly due to the fall expected in the activity of prefabricated steel structures.

Covid-19: How are the outlook changing for construction companies?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months.

Click here to request access to this report.

More on this topic

Nicaragua: Consumption Outlook

April 2020

Once the economy begins to return to normal, as the phases of the pandemic are overcome in the country, it is estimated that the demand for meals outside the home will have decreased by 13%.

Using a demand/income sensitivity model developed by CentralAmericaData's Trade Intelligence Unit, variations in demand by Nicaraguan households for different goods and services can be projected as the most critical phases of the spread of covid-19 are overcome and restrictive measures are lifted in the country.

Real Estate: Businesses Stop

April 2020

Some of the effects of the health emergency and the restrictions decreed by the government on the real estate sector in Guatemala are the cancellation of appointments with clients and the suspension of projects and contracts.

In the case of residential construction, businessmen anticipate that a considerable drop could be reported later, since the drop in remittances combined with the increase in unemployment, will affect the willingness to build or buy a house.

Commercial Sector Begins to Suffer from the Crisis

March 2020

Because of the health crisis generated by the spread of covid-19, shopping centers, restaurants, clothing and footwear stores, among other businesses, began to report a decline in commercial activity in Nicaragua.

Not all businesses in the commercial sector have been affected by the advance of the pandemic, as in recent days’ supermarkets and pharmacies have been crowded by consumers.

How Will Coronavirus Impact Construction?

March 2020

The impact of the covid19 crisis on the construction sector in Central America is expected to be explained, to a greater extent, by the expected fall in the business of prefabricated steel structures.

The "Information System for the Impact Analysis of Covid-19 on Businesses", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies according to their sector or economic activity, during the coming months.

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