Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Argentina's construction industry will suffer a contraction in 2016 as high inflation and
sncertainty surrounding the liberalisation of the economy weigh on fixed-capital investment. However, from
2017 onwards, we expect the pro-business policies and reductions in capital controls to spur investment
and spur a recovery in the industry.
Latest Updates And Structural Trends
? As expected, new president Mauricio Macri has quickly rolled out major parts of his liberalisation
agenda. We expect these trade and investment friendly policies to support the medium- to long-term
? However, we anticipate a contraction in construction industry value in 2016 as investors wait for inflation
to fall, consumption to pick up and the full extent of Macri policies to become clear.
? As such we expect negative real growth of -4.6% this year, but positive growth over the long-term with
an average annual real growth rate of 3.3% from 2017-2025.
? Chinese investment in the energy, utilities and rail sectors will remain elevated in the years ahead,
accompanied by an expected uptick in foreign direct investment from other countries as well.