El Salvador: Construction to Grow 3.5% in 2017

If the projections of the union are accurate, between public and private investment, $900 million will be earmarked for new construction projects this year.

Thursday, February 9, 2017

Although official figures have not yet been revealed, the Salvadoran Construction Chamber (Casalco) estimates that in 2016 the sector's growth was 2.5%, and realistically this year they predict an overall increase of just 1% more than last year. 

The Executive Director of Casalco told Elsalvador.com that "... 'I could say that this year we will grow by double, to 5%, but we have to be realistic. We believe that if we take both public and private investment together, we could make up perhaps 1% growth compared to last year.'"

Regarding the recent announcement of the granting of water feasibility studies to more than 140 construction projects,   "... The union leader indicated that these permits were one of the main obstacles for developing projects, and it is likely that at least half of them will start this year. Therefore, between the $500 to $600 million in private investment plus $300 million corresponding to 60% (as average execution) announced as public investment, the sector in total adds up to $900 million in projects in 2017."

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More on this topic

Perspectives for Construction in Honduras

May 2017

The construction guild plans to close 2017 with $650 million in public and private construction projects, and achieve a growth of almost 6% compared to 2016.

Figures from the Central Bank of Honduras indicate that in the first two months of this year private construction registered a 2% increase compared to the same period last year. Revistaconstruir.com reports that  "... the recovery comes as a result of the development of residential, commercial and industrial works in the municipalities of the Central District, San Pedro Sula and Choloma, among others in the northern zone."

El Salvador: Water Feasibility Certificates Slowing Construction

October 2016

The construction union estimated that $500 million worth of projects are on hold because they have not yet received the water feasibility permits they need.

Although months ago the Salvadoran Chamber of the Construction Industry (Casalco) estimated the value of construction projects halted due to lack of various permits at $700 million, union representatives claim that "... a part of that, which is worth $200 million- they have now started to resolve".

El Salvador: Lack of Political Will to Revive Construction

May 2015

The government has yet to make operational the law streamlining procedures for construction approved in late 2013, delaying the start of projects totaling more than $700 million.

Although it seems hard to believe, a law which was approved more than a year ago can not be implemented due to the lack of "real will to make the necessary changes." Meanwhile, construction projects estimated at about $700 million can not advance, having been drowned in excessive state bureaucracy.

Construction Sector Not Growing in El Salvador

December 2013

Lack of private sector confidence in the government and excessive bureaucracy prevented greater investments being made in this industry during 2013.

The construction industry describes 2013 as a year of stagnation, it is estimated that the Gross Domestic Product (GDP) of the sector will be 0% even though the previous year it closed at -2.4%.

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