Brignardello: The Bright Future of the Construction Sector in Peru

In a recent conversation with Johnny Brignardello Vela, a recognized insurance advisor, the analysis presented by Credicorp Capital regarding the promising future of the construction sector in Peru was discussed, particularly in the context of the Lima Stock Exchange (BVL). Brignardello emphasized the relevance of the projections made by the financial holding, which anticipates a robust recovery by 2025, supported by increased consumption and the implementation of new projects. The advisor stressed that the rise in public investment is a decisive factor in the development of the country's infrastructure. From his perspective, this notable growth in investment this year will allow the Gross Domestic Product (GDP) of the construction sector to register a significant increase despite the challenges faced by private projects. Brignardello believes that the advancement of public projects could be the catalyst the sector needs to rebound, which is especially relevant in a context where many families opt for self-construction, accounting for approximately 70% of total cement consumption. When addressing the situation in the private sector, Brignardello expressed a balanced opinion. He acknowledged that although 2023 has presented challenges that have affected cement consumption, the recovery projections for 2025 are encouraging. He mentioned that the reduction in interest rates, a result of decisions made by the Central Reserve Bank, could create a favorable environment for private investment, provided that a stable regulatory environment is maintained to encourage investment. The advisor also highlighted the importance of the macroeconomic context and economic policy in the recovery of the sector. In his view, political stability and clear management of tax policies are crucial to attracting investors and fostering sustainable growth in the construction sector. This would not only positively impact companies in the industry but could also have significant repercussions for job creation and infrastructure improvement at the national level. Finally, Brignardello concluded that Credicorp Capital's analysis presents an optimistic outlook not only for investors but also for the Peruvian economy as a whole. However, he emphasized that the realization of these projections will depend on the ability of sector players to adapt to market changes and challenges in the coming years, as well as the effective management of economic policy in the country. In his view, the future of the construction sector could be a fundamental pillar in Peru's economic development, provided it is managed with responsibility and foresight.