Source: Emol

A difficult start to the year and a worrisome immediate future is what the Chilean Chamber of Construction (CChC) envisions for the sector, a union that presented its Macroeconomics and Construction report (MACh 64) on Thursday.

According to the document presented by the president of the CChC, Juan Armando Vicuña, it is estimated that in 2023 investment in construction will fall sharply by 5.9% in annual terms, mainly due to the significant contraction of investments in productive infrastructure, both from the private sector as well as from the autonomous state companies.

This, in turn, translates into less employment. In the first quarter of the year, more than 46,000 construction jobs were destroyed compared to the same period in 2022, with nearly 60,000 jobs still to be recovered to match the best record in the industry.

Worrying figures, in the eyes of Vicuña. “This situation motivates us to call for concrete measures to protect jobs and create new jobs, boosting investment and working hard to reduce bureaucracy, permits and respecting legal certainty. Now is the time to do it” .

However, it is not all negative news, and it is that from the union they highlighted a decline in the prices of materials and inputs used by the industry. Thus, during the first quarter, prices increased 5.9% per year, which compares favorably with the average increase of 25.1% per year registered last year.

On the other hand, investment in infrastructure is projected to fall 5.8% annually due to an increase of 1.3% in twelve months in investment in public infrastructure -although as of March the MOP’s budgetary execution showed an annual decline of 36%. in amount executed-, in addition to a severe contraction of 13.3% in twelve months of investment in productive infrastructure.

On this last point, the Capital Goods Corporation points out in its most recent report that this year productive investment would be 34% less than in 2022, that private productive construction spending would contract 43% compared to last year and that spending in the public productive sector and autonomous state companies would fall 12%.

In housing, an annual fall in investment of 6.2% is projected. Investment in public housing would contract 4.4% in twelve months, while in private housing the decrease would be 6.6% annually.

For the year, it is estimated that about 25,000 homes will be sold in Santiago this year and up to 30,000 in 2024. In this way, and after the 29% decline in 2022, annual growth rates are expected between 22% and 17 % in 2023 and 2024.

Proposals to boost investment

Faced with this scenario, Vicuña proposed lines of action to promote investment, proposing the idea of a National Investment Promotion Policy that contemplates tax invariability pacts and long-term planning in terms of infrastructure and urban and territorial development, creating the institutional framework that make possible.

In addition, the union leader aimed to improve regulatory quality through the modernization of regulations that regulate the State-contractor relationship, application of measures proposed by the National Evaluation and Productivity Commission and strengthening of the legal certainty that investment projects need. .

Lastly, he put forward the need to guarantee public safety and to eradicate violence in its different expressions.