Economic growth across key Latin American economies is expected to improve in 2019 and over the forecast period, resulting in positive outlook across building and infrastructure construction sectors. GDP growth is expected to average around 2.7% in the region over the next four quarters, significantly higher than previous four quarters. This is expected to result in stable commodity prices, improved business confidence, and increased consumption.
Socio-economic factors as well as political turbulence in Latin America are considered to be the major reasons for construction industry witnessing deteriorating cash flow, hitting a plateau in recent years. Owing to the rising fuel prices, Latin American countries have been in state of unrest. This could also undermine the social stability in the region over the forecast period.
However, Latin America is likely to witness growth in its construction industry after sluggish period. The factors those are likely to contribute include increase in commodity prices, private capital infrastructure developments through Public Private Partnerships (PPPs) as well as State-run funds.
Known to be the largest construction market in the Latin American region, Brazil is expected to report an annual growth of 2.3% over the next five years. The government will invest nearly BRL 130 billion to resume 7,000 construction projects under the ‘Agora é Avançar’ scheme that aims to resume and complete previously stalled works.
Argentina is likely to boost growth in the region with 1.9% for the forecast period of 2018-2023. The Argentinean growth is driven by the passing of the law that allows public-private partnerships (PPPs) for infrastructure projects, which previously were undertaken by the state, thus protecting private investors and favouring financing.
Chile is witnessing accelerated growth, boosting the Latin American region’s economy. It has unveiled state-owned company ‘Fondo de Infaestructura’ to manage capital for infrastructure projects, with an aim to remove political influences and gain quick access to large projects.
Colombia is likely to report annual growth rate of 3.6% during the forecast period 2018-2023 for the Latin American region. It also has attracted investment of over US$ 18 billion for 32 road toll projects though PPP programmes.
Mexico aims to grow by 3.1% by 2020. One of the major concerns for Mexico is its high priority for secure trade negotiations to boost exports, which further will diversify and strengthen Latin American countries' trading partners.
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Construction industry in European countries is expected to post steady growth over the forecast period.
The region is expected to grow at a CAGR of 4.9% during 2017-2021 to reach US$2,344 billion.
Furthermore, ConsTrack360 expects growth to be broad based across countries – Nordic countries, Eastern European countries, and Western European countries.In line with expectation, Swiss sanitary products manufacturer Geberit Group reported a net income of CHF153.4 million, an increase of 2.1% compared to same period previous year.
The positive financials of Geberit indicates the beginning of recovery of the construction industry in the EU region, wherein the group has a significant business presence.
Despite positive results, the group said that its profits were hit by the strong Swiss franc that resulted in higher raw materials costs.The company, which generates majority of its sales through new construction projects, reported an operating profit (EBIT) of CHF180.2 million in the first quarter of 2017 as compared to CHF173.2 in the same period of 2016.
During the reported period, adjusted operating profit grew by 3.8% to CHF 190.8 million, while adjusted net income grew by 2.2% to CHF 162.2 million.To know more and gain deeper understanding of how construction industry is shaping up in Europe, click here.
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The variation in the types of elevators to suit different requirements is expected to motivate the global market for elevators and escalators in the upcoming period.Segmental AnalysisThe segmentation of the elevators and escalators market has been conducted on the basis of elevator technology, service, type, region, and end-user.
Based on the Elevator technology, the elevators and escalators market is segmented into traction, machine room-less and hydraulic.
Based on the regions, the elevators and escalators market has been segmented into North America, Europe, Asia Pacific and other regions in the world.Get Free Sample report At: https://www.marketresearchfuture.com/sample_request/5517Detailed Regional Analysis The regional assessment of the elevators and escalators market covers regions such as North America, Europe, Asia Pacific and other regions in the world.
The Asia Pacific region is responsible for the leading market segment in 2016 and is projected to progress at the maximum CAGR over the forecast period.
