Venezuela's private construction down 10.7%
Central Bank's data shows that the construction sector grew 12.6% from July-September amid reported growth in the public sector. For its part, the construction private sector has fallen for 11 straight quarters
Just a week ago, Venezuela's Planning and Finance Minister Jorge Giordani remarked that economic growth in the third quarter of 2012 was mainly due to the construction sector, which rebounded 12.6% of the GDP. However, according to the Central Bank of Venezuela (BCV), the activity has grown amid progress in the public sector rather than in the private sector, which continues falling.
Official data reveals that after falling 11 consecutive quarters, construction demand is down 10.7%.
BCV's data shows that in the third quarter, housing construction grew 0.8% only. While housing construction in the public sector jumped 31.2%, it dropped in the private sector. This explains why housing construction in general was slow.
Private construction accounts for 40% of the sector's contribution to the GDP. Hence, its deceleration impacts general performance. The downturn reported in the third quarter continues being attributed to the lack of raw materials, which limited the time to finish works in housing projects initiated in previous years.
Construction sector's representatives have informed that problems in the supply of raw materials have escalated, particularly in steel (bars, mesh), cement, aggregates, and blocks.
Translated by Jhean Cabrera
Cristian Fonseca, a businessman in La Candelaria district downtown Caracas, was doing the accounts in his small shop office on Sunday December 21, 2008. The Christmas shopping season kept him working late hours into the night. It was around 11 p.m. and his phone rang. A friend broke the bad news to him over the telephone.