Within the framework of the new positioning of the national government with respect to the public work and uncertainty in the private sector, the activity of the Construction fell 14.8% in December 2023, which represents the second month of decline in a row after the October boost.
The statistic was recorded in a report by the Sarandí Consultant reveals that this is the largest drop in the activity of construction supplier companies since the start of the coronavirus pandemic and represented the sixth month – not consecutive – of contraction in the sector in the year. In counterpart, The month of October 2023 had presented an increase of more than 10% in activity.
“It stands out stop public works and private activity due to the change of government and macro instability,” maintains the consulting firm’s publication. Directly, the Institute of Statistics and Registration of the Construction Industry (ERIC) indicates that the activity generates a historical average of 480,000 workersof which more than 300,000 are employed by SMEs companies. The sector would positively impact another 1,500,000 jobs indirectly.
The Government’s position: works will be prioritized for “users who have the economic power to pay for them”
On the third day of debate of the omnibus law in the Chamber of Deputies was present was the minister of Infrastructure, Guillermo Ferraro. The official promised that “ During 2024 we are going to finish all the works that are in execution, prioritizing those that are most advanced”, considering that there are “more than 2,500 works that were paralyzed for lack of payment.”
Within his presentation, the minister summarized the national government’s infrastructure paradigm: “We are going to encourage the private sector to take charge of projects where there is a demand from users who have the economic power to pay for it.. The State has to promote projects, organize the actors and generate an environment where this investment occurs: this is the challenge of the cultural change and it is what will give us the possibility of continuing to invest in infrastructure until we reach those GDP rates that are necessary to cover the deficit that exists due to so many years of delay.”
Guillermo Ferraro Minister of Infrastructure
Photo: Deputies.
“Is not that “Let us not consider minor works due to the magnitude of the work to be important to the people.”, he stressed, but noted that “we are moving towards the path of encouraging Argentina’s private sector to once again be a leading sector of the Argentine economy, not a sector that is dependent on the state budget.” “It will do very good for our country.” for the private sector to start thinking about how and where the opportunities are to be able to invest in Argentina,” he said.
NOA builders assure that in January they will run out of funds for works financed by the Nation
The medium and large businessmen of the NOA They stated that the own funds to keep the companies active public works that are sustained with national and provincial funds, will be enough to cover only until January.
The near future is uncertain and so far The attempts of the sector chambers to achieve a meeting with national officials have failed of weight that can provide details on what path the national government will adopt regarding the continuity or not of the works. And if the first measure is adopted, how its financing would be guaranteed.
According to Federation of Builders of the NOA (FCNOA)which integrate the cameras of the construction of Tucumán, Salta and Jujuyin the first province there are 110 projects in execution, which involve 15,000 jobs; in the second, 170 generate labor for 14,000 people; while in Jujuy lands 130 works employ 7,000 workers. In the last meeting of the sector, four days before 2023 expires, a reference from Santiago del Esteroprovince where nearly 125 projects guarantee work for 10,000 workers.
Source: Ambito
