MercoPress. South Atlantic News Agency

Argentine construction industry activity in the doldrums

In December compared to a year before construction activity plummeted 20.5%, after a vigorous start. (AP)

The construction industry in Argentina ended 2018 with a paltry 0.8% growth, and although taking off at the beginning of last year with a vigorous impulse but beginning May, when the financial situation forced the Peso to lose half of its purchasing power, activity started to freeze ending December with a 20.5% collapse.

The latest report from Argentina's stats office, Indec also indicates that employment in the industry dropped 3.9% in November compared to a year ago and was down 0.7% over October. The labor force in the construction industry in November had 438.572 registered workers.

Likewise the number of building permits in December was 13.3% lower than in the same month of 2017, and 3.8% down from November.

The president of the Argentine chamber of Construction, CAC, Julio Crivelli anticipated a further downfall saying that “the industry is going to suffer a strong fall this year”, given the “restrictive economic climate” in the country.

“Expectations are similar to those of the overall economy”, added Crivelli, who said that very few private sector projects are in the pipeline. This is because of the recessive situation of the Argentine economy and political uncertainty created by the coming presidential elections.

Crivelli also pointed out that even when the City of Buenos Aires has “a virtuous budget”, the same can't be said at “national level, where we have a different scenario”. In effect the federal government to balance the budget has been forced to drastically cut investment in public works.