The construction sector grew 12.1% in the second quarter of 2022

The executive director of the Salvadoran Chamber of Construction (Casalco), José Antonio Velásquez, stated that in the second quarter of 2022, the construction sector reported a growth of 12.1%.

“In 2021, we had $745 million in the same period, and in 2022, we will have $836 million, which means a growth of 12.1%. Now, according to our projections for the end of the year, the trend would practically remain the same,” said the union spokesman.

According to data from the union, in 2021 a recovery from the effects of the COVID-19 pandemic began because it began with the dynamics of remodeling houses to transform them into studios, offices, and classrooms.

According to the data provided by Velásquez for the second quarter, the sector contributes 5.4% to the country’s Gross Domestic Product (GDP), and by the end of the year, Casalco estimates that it will remain at up to 5.6%.

At the end of June 2022, according to official data, the sector had generated 25,305 direct jobs in the country. “We add three indirect jobs for each direct job, this means that around 100,000 jobs are being generated. We believe that at the end of the year we will be generating about 125,000 jobs », he stated.

In 2021, the sector closed, leaving around 23,000 direct jobs.

The government’s investment in public infrastructure, projected for this year at $1,500 million according to the Ministry of Finance, generates dynamism in the sector, according to the Casalco spokesman.

“When the public sector (government) invests in infrastructure, which is developed by private parties, that means stability in trade because the construction sector is a multiplier of the economy,” he said.

Likewise, he valued that, according to his own studies, every $1 invested in the construction sector translates into $2.5 or $3 in the economy. “In other words, that triples and employment is generated as a result of that same issue; jobs are generated at the time of construction and later when the buildings come into operation,” he added.

Casalco brings together 135 companies in the construction sector that are divided into a committee of real estate developers, general contractors, and producers and distributors of materials.

According to the union, these companies account for around 80% of the country’s construction development and handle the most significant projects in both the public and private sectors.