Construction, understood as one of the engines of the economy, has a direct influence on the generation of employment, infrastructure development, improvement of competitiveness, housing supply and real estate dynamics. All of these factors are very important in the economic growth of a nation. However, in recent years the countries of Latin America have only invested 2.3% of their GDP in infrastructure when the ideal should be 6.2%.
Historically, construction has been a leading actor on stimulating the economy. However, the economic slowdown of recent years has implied a lower investment in infrastructure by Latin American countries. In 2013, Brazil invested 65,755 million dollars, while countries such as Argentina, Colombia and Chile about 12,000 million dollars each. That is why public policies are focusing on the development of large infrastructure works such as roads and ports (transportation), hydroelectric and oil exploration (energy) and 4G networks (telecommunications) through public-private partnerships that promote economic growth and competitiveness of the region, thus achieving an improvement in the quality of life of the population.
Another of the predominant factor in the construction sector is real estate. The construction of housing not only has a significant economic impact for the generation of employment, but also by boosting the supply and demand of real estate. In Colombia, for example, the builders of VIP (housing of priority interest) and VIS (housing of social interest) can request the refund of the sales tax that they have paid in the acquisition of construction materials. Moreover, the buyers of this type of housing, can access subsidies between 20 and 30 minimum monthly wages. Stimulating the execution of this type of projects are seeking to increase employment and consumption and therefore economic growth.