Fast Market Research

Market Report, "Colombia Infrastructure Report Q2 2013", Published

Recently published research from Business Monitor International, "Colombia Infrastructure Report Q2 2013", is now available at Fast Market Research


Boston, MA -- (SBWIRE) -- 05/22/2013 -- BMI View: The government of President Santos continues to prioritise investment into the country's construction sector. Hence, backed by Colombia's national infrastructure agency (ANI)'s ambitious 2013 concessions programme, dubbed 4G, we maintain a healthy, if not attractive, outlook for the Colombian construction sector, with a real growth forecast of 5.5% for 2013. That said, we also continue to highlight persistent risks, such as corruption and security that could put a dent in Colombia's upward trend.

Key trends and developments in Colombia's infrastructure industry:

- In light of the recent Q312 construction figures released by the Colombian National Administrative Department of Statistics (DANE) we have slightly moderated our real industry construction growth estimate for 2012, from 5.5% to 4.5%. However, despite the estimated -12% annual change, we withhold that such swings are a common place in Colombia's relatively volatile construction sector (similar ups and downs were registered in both 2011 and 2010)
- Hence, on the back of continued strong backing from the Colombian government we maintain our outlook of a healthy annual average real construction growth of 5.2% between 2013 and 2017
- The infrastructure industry holds significant potential for investors, with real growth of 6.9% forecast for 2013. The residential and non-residential sector will see real growth of just below 4.0% - still a healthy recovery from the 4.9% decline seen in 2010
- Strong economic growth - with real GDP growth of 4.3% forecast for 2013 - and expansion in coal, mining, oil and gas extraction, coupled with the signed US free trade agreement are creating significant demand for new capacity and better quality infrastructure. Better access to ports and adequate highways will be essential if the country is to meet the expected increase in exports.

View Full Report Details and Table of Contents

We highlight that corruption and security remain potent risk factors:

- Colombia scores just 3.7 out of 10 for corruption in the country risk section of our infrastructure risk/ reward ratings, following several corruption scandals within Columbia's public works sector. This illustrates our concern of the impact on the country's business environment.
- That said, a concerted effort is being made to stamp out corruption in awarding tenders. This has been shown by the creation of infrastructure agency ANI, which has replaced INCO as the official entity in charge of infrastructure concessions. This gives us hope for future improvements.
- Although the government has partly quelled left wing guerrilla insurgencies so that insecurity no longer represents a systematic threat to the state, therefore promoting investment, the risk of violence still persists - targeting both people and infrastructure.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Browse all Construction research reports at Fast Market Research

You may also be interested in these related reports:

- Colombia Infrastructure Report Q2 2013
- China Infrastructure Report Q2 2013
- Thailand Infrastructure Report Q2 2013
- India Infrastructure Report Q2 2013
- Indonesia Infrastructure Report Q2 2013
- Czech Republic Infrastructure Report Q2 2013
- Japan Infrastructure Report Q2 2013
- Brazil Infrastructure Report Q3 2013
- Angola Infrastructure Report Q2 2013
- Singapore Infrastructure Report Q3 2013