electoral debate and fiscal issue concern the sector

The prospects of general economic growth worry the civil construction sector. The vice-president of Economics of the Civil Construction Industry Union of the State of São Paulo (Sinduscon-SP), Eduardo Zaidan, said that the “picture is not good”. “Inflation will be lower this year than last year, but it does not mean that we are free from maladjusted inflation”, he pondered.

This week, according to data from the Focus Bulletin, financial market analysts again reduced the estimate of the increase in the Gross Domestic Product (GDP) for 2022 to a high of 0.28% – last week, the estimate was that the indicator would rise 0 .36%. The forecast for 2022 inflation remained at 5.03%.

Zaidan also stated that the sector should feel the effects of the presidential elections, which will be a period of uncertainty, especially with the polarized scenario as it is today. “And we still have the fiscal concern, which is the background of Brazilian problems.”

Inter Research construction analyst Gustavo Caetano agrees. “With the latest numbers observed, we believe that the resumption of construction activity is directly associated with a more favorable macroeconomic scenario, but that still remains volatile in the face of current fiscal uncertainties and with the approach of the electoral debate”, he said, in a report.

According to the segment, what will sustain the construction GDP this year will be the opening of new residential construction sites. Cities like São Paulo, for example, had record launches in 2021 and 2020. Generally, the works start about six to nine months later. From there comes the purchase of materials and equipment, hiring of personnel and services, which increase the sectorial GDP. “The level of activity that we see today will continue as long as the works last,” said Zaidan.

The calculation for the sector’s GDP still does not consider the effects of the new wave of covid. “There is leave (of workers), but it is not something that we can compare with March or April 2020, when up to 30% of the workforce was removed”, commented Zaidan.

The information is from the newspaper O Estado de S. Paulo.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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