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The Argentine construction industry is going through a period of uncertainty. Apart from the socio-economic uncertainties, the ongoing coronavirus disease (COVID-19) pandemic is also impacting the growth of the industry. It is expected that the government’s recent housing plans are likely to support the industry in the short to medium term.
The Argentine construction industry and Covid-19
The construction industry is struggling to manage its growth momentum due to the ongoing coronavirus outbreak. The large construction projects are going on hold or getting suspended due to government-imposed nationwide lockdown, to control the spread of the virus. In March 2020, Lithium Americas Corp publicized that the company temporarily suspended its construction activities at the Cauchari-Olaroz lithium project in Jujuy, Argentina. This came after the government imposed a mandatory quarantine in March 2020.
On the other hand, the requirement for hospitals is increasing along with the rising number of coronavirus cases in the country. Notably, as on July 13, the number of coronavirus confirmed cases surpassed 100,000 in Argentina.
In March 2020, the Plata Basin Financial Development Fund (FONPLATA, a development bank formed by the five countries - Argentina, Bolivia, Brazil, Paraguay, and Uruguay) provided US$15 million to Argentina, for the construction of 11 modular emergency hospitals to manage Covid-19 crisis.
Hospital Solidario COVID Austral, a modular hospital based in the Pilar University campus, Argentina built within 36 days. The hospital started its operation since June 1, 2020.
The new housing plan is likely to boost the market growth
The housing crisis is one of the major concerns in the country. To manage the situation, the Argentine government announced the implementation of the "Argentina Construye" a housing plan that aims to construct 5,500 new homes throughout the country in May 2020. The government proposed to invest 29,000 million pesos for this housing project. Apart from building new houses, the project will also focus on building health centers and repair works for existing housing complexes.
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