Bolivia Construction Market Size, Trends and Forecasts Report 2022: Industry is Expected to Expand by 9.5% in Real Terms - Forecast to 2026 -
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Loading... - Carla Mamani
- 28 Jul 2022
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The Bolivian construction industry is expected to expand by 9.5% in real terms in 2022, before moderating to an annual average growth rate of 4.1% over the remainder of the forecast period.
The industry's output in 2022 will be supported by investments in the country's transport, health, and education infrastructure projects, coupled with the government's plan to spend on various projects in the industrial sector, as part of the country's industrialization plan.
In the initial part of the forecast period, the industry's growth will also be supported by a rise in the total number and floor area of building permits approved in the country last year. According to the Instituto Nacional de Estadistica (INE), the total number of buildings permits grew by 26.4%, while the total floor area of construction plans approved grew by 19.4% in 2021.
The current president, Luis Arce, promised to prioritize public investments to reactivate economic growth. In the 2022 General State Budget (PGE), BOB34.5 billion ($5 billion) was allocated for public investments in 2022 - which is 25% higher than that allocated in 2021. As part of the 2021 budget, the Bolivian Highway Administration (ABC) executed 76 road maintenance projects, while nine rehabilitation projects were under execution, as of late 2021.
Moreover, in July 2021, the government announced that it will spend BOB4.5 billion ($651.2 million) on restarting pending projects in 2021-2022. Moreover, in October 2021, the Chamber of Deputies approved the Economic and Social Development Plan (PDES) 2021 - 2025, to rebuild the economy. The plan includes an investment of BOB229.4 billion ($33.2 billion) over the next five years in the production, infrastructure, and social sectors - mainly health and education.
Forecast-period growth in the Bolivian construction industry will also be supported by investments in infrastructure, energy, hydrocarbon, and industrial projects. The gradual recovery in oil and natural gas production, coupled with the reactivation of halted infrastructure projects, has bolstered investor sentiment.
In February 2022, the ABC revealed details of projects that are currently underway; this includes the Rurrenabaque - Riberalta highway project in Beni (508.7km), the Espino - Charagua - Boyuibe project in Santa Cruz (159.4km), and the El Sillar double track section project in Cochabamba (30km), among others. In addition, works restarted on the construction of bridges and highways, especially in the Uyuni - Tupiza, and the San Buena Ventura - Tumupasa and Rurrenabaque - Ixiamas sections. Read More...
