Summary

Brazil’s construction industry is expected to grow by 0.7% in 2021, after declining by 7% in 2020, in line with GlobalData’s forecast of a contraction of 7.1% for the year. Over the remainder of the forecast period, the industry is expected to grow by 2.8%, supported by low interest rates and the government’s housing programs such as “Casa Verde e Amarela”. The program, which was launched in July 2020 and replaced the Minha Casa, Minha Vida program, aims to provide funding to low-income families via loans, incentives in debt renegotiation and land legislation of about 12 million low-income properties in the country. Despite the strong demand for houses, however, the shortage and increase in the prices of building materials are anticipated to hold back investment in the residential market and the overall industry in the short term.

In addition, uncertainty over the duration and behaviour of the virus and slow progress of the vaccination program, together with widening fiscal deficits and increasing public debt burdens in the face of weak economic growth and heightening political risks, are expected to continue to restrain the government’s efforts to facilitate more private and foreign investment in the country’s infrastructure development, while leaving not much space in the budget to invest in public works. Other factors hindering investment in the industry include high levels of bureaucracy and corruption scandals.

Brazil has the world’s second highest number of COVID-19 cases in the world after the US, as well as the world’s second highest number of fatalities (also after the US). As of March 16th, 2021, the country had 11,519,609 confirmed COVID-19 cases and 279,286 fatalities, according to Johns Hopkins University. While the country continues to struggle to contain the number of COVID-19 cases, the impact of the pandemic on the construction industry has been less severe when compared to other major Latin American countries, as nearly all building activities have been allowed to carry on since the start of the pandemic.

The government’s income transfers to support millions of poor households, which are due to expire at the end of 2020, also helped to prevent a much worse outcome in the region’s largest construction market. However, the country’s devastating second wave of COVID-19 and fragile economy are adding pressure on the government to keep spending.

This report provides detailed market analysis, information, and insights into Brazil’s construction industry, including -

  • Brazil’s construction industry’s growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Brazil’s construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.




Scope

This report provides a comprehensive analysis of the construction industry in Brazil. It provides -

  • Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Brazil, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants




Reasons To Buy

  • Identify and evaluate market opportunities using GlobalData’s standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData’s critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.