American Expatriate Costa Rica

Construction sector shows decline

During the first half of 2016 private constructions have presented a 17.3% fall.

It is seen in the non-residential buildings, where constructions had a decrease of 31.1%, whereas residential buildings construction fell to a 6% annual rate.

Regarding public construction, the entire sector had a drop of 12.6%, according to the Índice Mensual de Actividad Económica (IMAE).

Randall Murillo, Director of the Costa Rican Chamber of Construction, explained this situation is taking place because great construction projects were ended last year in both public and private sectors.

According to data from the Costa Rica Central Bank, this fall is due to the completion of the construction of City Mall building in Alajuela, which began in the third quarter of 2014, but it largest progress was recorded in the second and third quarter of 2015.

According to the Chamber of Construction implementing more infrastructure projects that facilitate the investment in new private works is also necessary.

On the other hand, residential buildings had an annual decrease of 6%. In spite of this, an increase in the construction of residential buildings is taking place as well as social housing and homes’ expansion and remodeling, which allowed to mitigate the fall.

This situation is expected to change by the end of the year.

crhoy.com