Home Business Construction industry closes 2017 with a 6 per cent drop

Construction industry closes 2017 with a 6 per cent drop

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In 2017, for the fourth consecutive year, Brazil’s construction industry ended the year with a decline: a 6 percent drop, according to the Brazilian Chamber of Construction Industry’s (CBIC) annual balance report.

Since the crisis in the sector began in 2014, more than one million jobs have been lost. Although the sector is returning to show some signs of recovery, the numbers of construction and real estate market are still alarming, said in an interview in Brasilia CBIC’s chairman Jose Carlos Martins in an interview in Brasilia..

According to Martins, the sector’s retraction in 2017 will impact the performance of the Brazil’s GDP by about 0.5 per cent. The sector’s productive chain, which four years ago was 10.5 percent of the country’s GDP, currently accounts for 7.3 per cent of a lower GDP.

“We have the disease, the diagnosis, but not an adequate remedy that has served in recent times,” said Jose Carlos Martins.

The recovery of industry, he said, depends on three key factors identified by industry leaders and entrepreneurs: investment in infrastructure, especially in concession projects and public-private partnerships; the returno  of ampler credit, and the improvement of the national business environment.

The expectation is that construction may have a  small recovery already starting next year – around 2 per cent positive – if measures proposed by the construction sector are met by the Executive and Legislative.

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