Costa Rica construction sector makes surprise recovery this year

Growth this year was led by the housing sector. (ICR archive)

November 17^th, 2015 (ICR News) After witnessing a contraction in 2014, Costa Rica’s construction sector made a surprise recovery this year with positive growth, according to the Costa Rican Chamber of Construction (CCC).

After negative growth last year of -2.3 percent, the sector should close this year with positive growth of around 4 percent, CCC president Guillermo Carazo told Amelia Rueda.

The news comes as a surprise after a report in August indicated that construction activity had fallen across the board during the first half of this year compared to the first half of 2014.

A total of 6,480,574 square meters of construction were completed between October 2014 and September 2015, the most recent data available, according to the report.

While positive news, this year’s growth in the sector is far from the double-digit growth witnessed in 2012.  Between October 2011 and September 2012, the sector grew an incredible 26 percent versus the 12 months previous.

The sector began to contract in 2013, with positive growth of just 0.5 percent.

Growth this year was led by the housing sector, followed by commercial developments.

Housing grew by 6.6 percent between October 2014 and September 2015, reaching 3,446,626 square meters and accounting for half of all construction during the period, according to the Association of Engineers and Architects (CFIA).

Commercial construction during the period reached 1,576,036 square meters.