Argentina’s construction industry plunged by 21.1% in real terms in 2024, owing to inflated prices, high construction costs, and dramatic fiscal budget cuts, among a plethora of alternative growth-stunting factors. Earlier in December 2023, President Javier Milei’s austerity drive abetted the devaluation of Argentina’s peso in pursuit to control imports, curb inflation, and tackled Argentina’s mammoth fiscal deficit. Consequently, the average construction cost index in Greater Buenos Aires – which houses approximately 33% of Argentina’s total population – grew by 231.8% year on year (YoY) in the first seven months of 2024, preceding appreciating by 138.6% in 2023, according to the National Institute of Statistics and Census of Argentina (INDEC).
February 6, 2025
SOURCE: BUSINESS WIRE