MARKET INSIGHT | LATIN AMERICA
Mexico’s construction sector is forecast to contract by 5.9% in 2025 due to 25% bilateral tariffs, currency depreciation, high material costs and weakening investor confidence – a trend compounded by the end of the 90-day trade pause with the US. Across the wider region, investment remains constrained by fiscal tightening and inflationary pressures. Nonetheless, certain markets are bucking the trend. Ecuador and Peru are both
expected to grow by 3.8% in 2025, supported by infrastructure, industrial, energy and utilities projects. Peru’s construction sector is underpinned by a $64.1bn mining pipeline and infrastructure upgrades. In Colombia, progress on projects such as the Bogotá Metro is helping offset challenges from a high fiscal deficit and political uncertainty. By contrast, Bolivia faces a sharp downturn, with collapsing construction
permits, soaring material costs, and macroeconomic instability driving a steep contraction. While short-term volatility remains high across the region, targeted infrastructure, industrial and energy investments – combined with looser monetary policy to stimulate the economy – are creating pockets of growth in an otherwise constrained fiscal environment.
Latin America – Industrial construction project pipeline, projected spending Value by stage ($ millions)
80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
2022 2023 2024 2025 2026 2027 2028 Pre-planning Planning Pre-execution Execution Construction complete Note: Based on assumption that all projects proceed as planned and that spending is evenly distributed during the construction phase. 2029
Latin America – Industrial construction project pipeline By sub-sectors ($ millions)
0
50,000
100,000
150,000
200,000
250,000 Chemical and pharmaceutical plants Manufacturing plants Metal and material production and processing plants Waste processing plants
Latin America – Industrial construction project pipeline Funding mode by top country (% of total)
Country Brazil
Chile
Mexico Peru
42 | September 2025 |
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Private 94.5%
74.4% 81.6% 93.9%
Public 0.3%
0.0%
15.5% 6.1%
Public/Private 5.2%
25.6% 2.9% 0.0%
300,000
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