DUBLIN--(BUSINESS WIRE)--The "Panama Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Panama is forecast to grow by 29.5% in real terms in 2022, following an annual increase of 31.7% in 2021, supported by advancements in regional transportation and tourism infrastructure across the country, coupled with the reopening of borders and a higher vaccination rate.
In early April 2022, the Ministry of Public Works announced that the country is developing major roadway projects totaling 1,303km of road, with a $1.1 billion investment. Of the total, 774km of highway was contracted, with 529km remaining to be contracted in the coming quarters.
Moreover, the Minister of Economy and Finance predicted in April 2022 that the country will reach pre-pandemic levels of economic and industrial output this year, as opposed to the previous forecast of 2023. According to the latest estimates of the International Monetary Fund (IMF) and World Bank, the country's economy will grow by 7.5% and 7.8% in 2022, respectively.
In October 2021, the government announced the revised General State Budget for 2022. The total budget amounted to $25.3 billion - an increase of 0.66% from the original budget announced in August 2021, and up by 4% from the budget approved for 2021. Of the total budget, $4.8 billion will be allocated towards the infrastructure development sectors, and $3.9 billion for the healthcare sector.
Over the remainder of the forecast period, the construction industry is expected to stabilize at an annual average growth rate of 6.7%, supported by public and private sector investment in the development of transport infrastructure and energy construction projects. Panama began construction on a 670MW natural gas-powered electric generator in March 2022, with a $1 billion investment led by InterEnergy Group and AES Panama. The project aims at building a 670MW power plant, which is expected to be completed by 2024.
In the short term, there are downside risks stemming from the rising inflation, growing raw and building material prices, as well as increases in transportation and fuel charges. According to the National Institute of Statistics and Census of Panama (INEC), the country's Consumer Price Index (CPI) increased by 3.2% YoY in March 2022, which is 50% higher than the previous month.
The increase in the CPI was primarily influenced by an 11.8% increase in transportation prices and a 2.5% increase in hotel and restaurant charges. Further risks include the impact of the conflict in Ukraine on oil and energy prices, and the resulting impact on building materials and wage costs.
Scope
- Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Panama, 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
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