Thu Sep 19 08:05:00 UTC 2024: ## Chile’s Construction Industry Faces Short-Term Contraction but Long-Term Growth Forecast

**Santiago, Chile** – Despite facing short-term challenges, the Chilean construction industry is expected to experience a rebound in the coming years.

According to a report by ResearchAndMarkets.com, the industry is projected to contract by 1.6% in real terms during 2024 due to high inflation, rising interest rates, and increased construction material costs. This follows a decline in value add during the first quarter of 2024, continuing a trend observed throughout 2023.

The residential sector, in particular, is experiencing a decline in investor and developer confidence due to a consistent drop in residential permits. This is further weighing down the industry in the short to medium term.

However, the forecast predicts an annual average growth rate of 4.1% between 2025 and 2028, driven by investments in various key sectors:

* **Energy:** Chile’s commitment to green energy is evident in the government’s support for hydrogen projects, including tax breaks, expedited permitting, and funding. This has already attracted investment, with Minera Centinela expanding its copper plant and the government planning to add lithium plants.
* **Transportation:** The government has announced concession contracts totaling CLP15.1 trillion for transportation, public buildings, water, and disaster safety projects over the next four years.
* **Mining:** Significant investments are being made in the mining sector, with Minera Centinela’s copper plant expansion being a notable example.

The report highlights the importance of these investments in driving the construction sector’s recovery and contributing to Chile’s long-term economic growth.

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