Construction sector on shaky ground in 2022 despite optimism

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 Vargas (FGV) and São Paulo construction union SindusCon-SP, the sector’s GDP is expected to grow 2 percent this year. While this would be well above the poor results of 2020, it is unlikely to keep pace with 2021’s recovery.

“Our GDP grew 8 percent last year on top of a sizable reduction; 2021 was a year of recovery. And in 2022, we will enter...