Construction in Brazil: In the Midst of Obstacles, Construction Persists to be the Forte of Brazil’s Economy

Published on : Nov 23, 2018

Albany, New York, November 23, 2018: Brazil, with $2.14 trillion, is the 9th largest economy in the world, concludes International Monetary Fund. Brazil is inundated with sophisticated mining, agriculture and plethora of other opportunities. In spite of hosting Football world cup in 2014 and Olympic Games in 2016, construction activity was fragile. This was backed by austerity measures embraced by the government to curb the budget deficit and corruption allegations against politicians that shook the country. These assimilations are according to the report titled “Construction in Brazil,” which has been recently added to the repository of Market Research Hub.

Though in 2019 construction industry is projected to rebound, 2018 is witnessing a plunge of 1.5%. The assessment period (2018-2023) will witness a sublime growth as the construction industry is estimated to be underpinned by the large economy, ease of doing business and combating corruption. Moreover, recovery in fuel prices is projected to augment the government’s ability to make investment in bigger infrastructure construction projects. In order to develop road, port, railway, power transmission lines and sanitation infrastructure, Brazil government in 2017 launched an infrastructure concessions program. In addition, through PPP (Public-Private Partnership) model, government is set to invest BRL45 billion (USD 14.1 billion).

The bureaucracy of Brazil appear gloomy as Brazil lag below 100 in ease of doing business, according to the latest report of World Bank. Moreover, indictment of construction companies in scandals and corruption is a matter of concern.

The government looks to build 717,000 new residential units in So Paulo and 240,000 affordable housing units for low and middle-income families by 2030. The market is set to be propelled by the surging demography coupled with urbanization. Apart from that, government vies to generate 48% of the total energy from non-hydro renewable sources by 2026. Being one of the BRICS nations, the government plans to install high fiber optic cables in 70% of the country’s municipalities by 2020.

Construction in Brazil: Report Content

The report is an exhaustive analysis on the trends and opportunities of construction in Brazil. Being one of the BRICS nation, Brazil are struggling with the scores of corruption allegations. The report peruses into the drivers, restraints, opportunities and trends for the construction industry in Brazil.

The report also includes the segmentation of construction by sector. It incorporates commercial, industrial, energy and utilities, institutional and residential. In addition, report also does assessment of mega-project pipeline, estimated spending on various projects and segregation by development stage across sectors.

The report begins with the executive summary which reveals market size in terms of revenue, market value and production. In addition, an exhaustive analysis of the competitive landscape highlights profiles of prominent players in the global market space. Furthermore, the report examines the strategic moves, areas of interest, and recent developments done by eminent players in construction market.

Construction in Brazil: Research Methodology

A thorough research methodology has been adopted with regards to providing a research approach incorporating of secondary and primary research. The analysis in the report is the result of the in-depth secondary research, primary interviews and in-house reviews by panel of experts.

The secondary research includes company websites, SEC filings and presentations by investors, industry white paper and statistical database. Whereas, the primary research embodies face to face interviews, phonic interviews and e-mail interaction. To provide an authentic report, expert panel peruses the data collected from various sources.

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