This 2024, sector investment will record a drop of 1.3%, nine percentage points greater than what was previously anticipated, according to the new investment projections provided by the Chilean Chamber of Construction (CChC). This would be due to the slower pace of decline in both inflation and interest rates, and the increase in the price of materials in recent months, among other factors, according to its recently delivered Macroeconomics and Construction (Mach) report.
The analysis by subsectors shows that investment in infrastructure will fall 0.3% annually, as a result of investment in public infrastructure will grow 5.3%, but productive investment will decrease 6.3%. In the first quarter of this year, the Ministry of Public Works (MOP) executed about 13% of its budget decreed for investment initiatives. Despite being a much greater advance, it will continue to be a greater challenge to improve the pace of budget execution in the remainder of the year.
For its part, the investment flow via concessions in 2024 would be around US$ 780 million, far exceeding what has been observed since 2018, while a sharp drop in investment and spending on project construction is expected this year. of private productive infrastructure.
In terms of investment in housing, this would contract 3.2% annually in 2024. Once again, public investment in housing shows record figures, with US$ 3,870 million allocated to the execution of housing programs and investment in the city, representing a growth of 9 % compared to 2023. Investment in private housing, meanwhile, would fall 6.4% in twelve months, according to the breakdown of this important study.
Likewise, at the end of 2023 the Housing Emergency Plan showed progress of nearly 40% with respect to the goal. The high number of homes in advanced stages of construction allows us to estimate that in 2024 nearly 54,000 homes will be completed, the highest number in the last five years. On the other hand, in the real estate market, few changes are projected. Factors such as interest rates, unemployment and uncertainty will continue to limit the ability to access home ownership in the medium term, so it is expected that in 2024 the real estate sector will grow around 4%, but with a bias towards lowers it.
In relation to employment, construction currently registers 155,000 workers less than its potential. This sectoral employment gap would explain one third of the total estimated employment gap at the national level. For 2024, no major changes are projected regarding new hires.
PACT FOR DEVELOPMENT
The national president of the Chilean Chamber of Construction (CChC), Juan Armando Vicuña, called to promote investments, employment and growth. “The more time we waste on placements and discussions, the less energy we will have to grow again,” he said.
The union leader added that for the sector he represents there are two groups of measures that should be worked on to be implemented in the short term: those that the CChC has proposed in recent months and many of those contained in the “Pact for growth.” economic, social progress and fiscal responsibility” promoted by the Government. “Our industry, and the economy in general, are not in a position to support higher taxes, but the Pact proposed by the authority contains many other elements that would boost the economy and the well-being of the people,” concluded the president of the CChC. “We have to take action as soon as possible. “We are facing a very relevant opportunity, which would allow, for example, to modernize the State, improve public spending and the public contracting system, reduce informality and attract new investments, among other things.”
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