Jobs in the construction sector, at risk due to lack of dynamism

During the first quarter of 2023, Colombia managed to expand GDP by 3%, according to the National Administrative Department of Statistics (Dane).

(See: Housing slump deepens after 10 months of decline in sales)

Of 12 activities analyzed in GDP during January and March 2023, only construction continues to lag. This is because infrastructure projects, according to Dane, have reported a drop of 14.9% in the first quarter.

(See: The pace continues to slow: home sales fell 61% in March)

One of the reasons why the sector is in this situation “it is due to the lower execution of 4G road projects. Since several are in an advanced stage or were previously delivered, and the slow dynamics of public works. Projects such as the Bogotá metro are still in early phases and their progress does not compensate for the poor dynamism of other items”, affirmed Julio Romero, chief economist of Corficolombiana to Bloomberg Line.

(See: They repair road section between Barrancabermeja and San Alberto)

According to information from the National Institute of Roads (Invías) and the National Infrastructure Agency (ANI), By the beginning of the year, about 35 projects were completed of 4G roads throughout the country.

It should also be noted that on the sales side of new housing in the country there have been falls of more than 50% in recent months. High interest rates and increased inputs are possible factors affecting sales performance.

(See: The trade sees the sales outlook ‘grey’).

For those reasons, jobs in the construction sector have been put at risk.

That’s how he mentions it Sergio Olarte, Scotiabank Chief Economist, Bloomberg Line: “The costs have been high and a good part of the inputs are imported. The dynamism of the sector, and therefore employment, has been delayed because the exchange rate does not help and its execution has been slow”.

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