According to the Peruvian civil construction association Capeco, the sector has operated at a very low pace during the first half of the year and is now moving into a negative scenario along the second half, due to a “deterioration of the politics activity and complicated international environment.”
According to Capeco, public investment has declined by 2.2 percent during the first half of 2022, due to a lower execution of works by the federal government, while credit to the low-income housing program Mivivienda declined by more than 12 percent, due to a reduced level of subsides and higher interest rates.
Capeco added that raw materials prices have increased by 27 percent so far in the year but conceded that the uptrend is gradually being reduced.
According to Guido Valdivia, executive director of Capeco, private investments will be reduced due to perspectives of economic recession, while public investments will not increase, due to delays by the government in eliminating administrative barriers that are negatively affecting the execution of works.
Valdivia added that, if such situation is not resolved in a timely manner, the production, investments, and the employment level will be affected during the next few years.
