Construction sector on shaky ground in 2022 despite optimism

Brazil's construction sector enjoyed something of a recovery last year after a torrid time during the pandemic. Spirits are raised, but macroeconomic factors could make for a difficult 2022

construction brazil
Construction site in São Paulo. Photo: Alf Ribeiro/Shutterstock

After spending a pandemic-ridden 2020 in the red and threatening a recovery in 2021, Brazil’s construction sector goes into this year with caution — but moderate optimism. On the one hand, the growth of private investment in infrastructure, real estate’s reputation as a safe asset, and the expected election-year bump in public spending should allow the sector to lay solid foundations for 2022.

However, at the same time, the electoral period always brings uncertainty, added to the existing economic woes in Brazil and the drop in citizens’ real income.

According to projections made in January by think tank Fundação Getúlio...

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