SANTO DOMINGO.- Following the rebound shown by the construction sector in the semi-annual report of the Central Bank of the Dominican Republic (BCRD), which registers positive numbers, 2.1% year-on-year growth, Acoprovi, the Association of Housing Builders and Promoters, believes that the growth projection for that sector is upward.
Annerys Meléndez, president of the organization that brings together the men and women of the block and cement industry, states that the recent reductions in the monetary policy interest rate (MPR) present a new scenario where mortgages and investment in housing and construction projects are expected to be even more attractive, which directly impacts the dynamism of the sector.
He believes that the current conditions in the national and international market favor the continuation of the downward trend in construction material prices, a condition which he says has been an encouraging element for one of the pillars of the national economy.
“At Acoprovi, we are hopeful that the decrease in inflationary pressure on raw materials and the problems with the supply chain and production of materials resulting from the pandemic and aggravated by the war in Ukraine will help put an end to this growth in construction costs,” the representative of the association stated in response to questions for El Inmobiliario.
It states that although the increase in the prices of construction materials and inflation have directly impacted the sector, in recent months the outlook has been encouraging and it is expected that the construction sector will continue to play a fundamental role in contributing to the sustainable revitalization of the country.
Among the main inputs that have begun to show a downward trend in recent months are flooring, ceramics, PVC pipes and wood, registering (-33.66%), (-31.15%) and (-26.29%) respectively, as well as tools and steel.
Meléndez adds that the construction sector declined at the beginning of the year due to high inflation and the increase in rates resulting from the restrictive monetary policy implemented by monetary authorities to control said inflation.
He points out that inflation has currently subsided, so in recent months monetary policy has been changing with the decrease in rates, in response to the measures implemented by the Central Bank.
He adds that the measures adopted by the Monetary Board were something that "we at Acoprovi had been anticipating and hoping to see so that it would have a positive effect on the construction sector.".
Growth
The construction sector registered a year-on-year growth of 2.1%, placing it among the sectors that experienced significant improvements last July, in relation to its performance in the first half of the year, according to the report released by the Central Bank of the Dominican Republic (BCRD).
“The value added of construction activity showed a year-on-year growth of 2.1% in July 2023, demonstrating its recovery given the more favorable conditions observed in the current situation, fostered by the facilities of resources made available by the monetary authorities through financial intermediaries, lower interest rates, greater execution of public capital spending and the stabilization of the price of inputs used in this activity,” according to the preliminary results of the Dominican economy in July 2023.
The figures given in the report show that RD$11,732 million has been disbursed for construction.
