• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Biocides Market Outlook - 2027

    Lab & Testing Equipment Directory

    Aerospace Coatings

    Resins Update

    Coatings World Q&A: Eileen Weber of allnex
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    What are You Reading this Week?

    Nippon Paint Automotive Americas Appoints Robert Angart CEO and President

    Sustainability, Economy are Focus of BCF’s Annual Conference

    Demand for Rhino Shield Increases

    ICP Receives ASC Innovation Award for Spray Foam That Meets Changing Environmental Regulations
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Nippon Paint Automotive Americas Appoints Robert Angart CEO and President

    Demand for Rhino Shield Increases

    PPG Demos MOONWALK Refinish Paint Mixing System at Media Event

    Pylon Coatings Uses Polygiene Biomaster & Verimaster for Antimicrobial Surface Protection

    Powder Coatings Institute 2022 Scholarship Recipients Announced
    Additives
    Binders
    Pigments
    Solvents

    The Shepherd Color Company Announces New President and Commercial Segment Leaders

    Birla Carbon to Present Sustainable Carbon-based Solutions at PaintIndia 2022

    BTC Europe, NXTLEVVEL Biochem to Distribute Biobased & Biodegradable Solvents in Europe

    Nouryon Issues 2021 Sustainability Report

    BASF to Increase Prices for Select Polyalcohols in North and South America
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Active Minerals

    Pilot Chemical Company

    Siltech Corporation

    Clariant Additives

    W. R. Grace & Co.
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    UTECH Middle East/Africa Foam & Polyurethane Expo

    Surfex

    Middle East Coatings Show 2022

    ABRAFATI 2022
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Active Minerals

    Pilot Chemical Company

    Siltech Corporation

    Clariant Additives

    W. R. Grace & Co.
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • India/Asia Pacific Report
      • China Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Latin America Reports

    Peru Investment Plan to Boost Demand

    As government debts grows smaller, revenues will rise, and a broad new spending plan should boost further growth.

    Peru Investment Plan to Boost Demand
    Growth in the Peruvian construction industry is expected to expand.
    Charles W. Thurston , Latin America Correspondent04.15.20
    Peru expects to witness economic expansion averaging 4.4 percent over the next few years, with a rise to five percent by 2023, according to the Ministry of Economy and Finance (MEF). As government debt grows smaller, revenues will rise, and a broad new spending plan should boost future growth.

    This government spending plan will be echoed by new private sector investment – including public-private partnerships – that is expanding faster than the gross domestic product (GDP).

    Peruvian officials hope to maintain the economy at a growth rate of at least five percent in order to continue to modernize the country.

    Between 2002 and 2013, Peru was one of the fastest-growing countries in Latin America, with an average GDP growth rate of 6.1 percent annually, according to the World Bank.

    As the economy recovers its former pace, the demand for paint and coatings should rise by several percentage points over GDP expansion.

    This seems likely both for the industrial and architectural segments. The rise in investment and consumer spending will not be affected by inflation, which is holding at less than two percent per year.

    National Infrastructure Spending Plan

    The planning policy for the targeted growth in Peru was formulated in July 2019 as the National Plan for Competitiveness and Productivity (PNCP), which set out 52 national infrastructure projects that are expected to cost about
    $30 billion.

    The PNCP expects “…greater private investment in infrastructure projects, such as the ($6.5 billion) Lima and Callao Metro Line 2, the General San Martin Port Terminal, the expansion of the Jorge Chavez Airport, among others.

    On the other hand, the continuity of execution of large mining projects (including the $5.3 billion Quellaveco mine, as well as Mina Justa, and the Toromocho mine expansion) will favor this recovery.” 

    Mining, construction and transportation are the key industries that are expected to add most to GDP growth.

    Mining alone is expected to attract some $12.5 billion in new investment according to Banco Bilbao Vizcaya Argentaria (BBVA).

    Construction Key to New Growth

    Similarly, growth in the Peruvian construction industry is expected to expand at an annual average of 5.2 percent, according to GlobalData Analyst Dariana Tani.

    Peruvian construction investment could increase to $36.6 billion by 2023, up from $28.7 billion in 2018, according to GlobalData.

    Apart from infrastructure construction, close to $450 million worth of retail malls and other facilities are being developed by the private sector, the PNCP notes.

    Housing construction also will expand thanks to new government-backed mortgage lending.

    In Lima alone, about 17,000 new homes were expected to be added last year, a rise of about eight percent from the year-earlier result, the PNCP indicates.

    During the first half of 2019, over $1 billion in new real estate developments were announced, including close to 100,000 square meters of new office space, the plan divulged.

    While corruption in government and industry delayed the onset of several infrastructure projects, a change of leadership at MEF is now expected to usher in
    new growth.

    In October, María Antonieta Alva, 34, became the Minister of MEF. She holds a Master’s in Public Administration in International Development from the Harvard Kennedy School of Government, and a BA in Economics from Universidad del Pacífico, in Peru.

    There is some concern that the coronavirus could dim growth in Peru this year, but the impact of new investment may be greater, noted Francisco Grippa, the Principal Economist of BBVA Research in Peru, in a recent interview with the Andina news agency.

    “There are positive factors that must be taken into consideration such as public investment, which may attenuate the coronavirus effect. Lately, public investment is growing quite significantly and increased more than 50 percent in the first two-month period,” Grippa told Andina.

    Paint & Coatings Demand to Expand

    Thus the industrial segment of the paint and coatings market should benefit most from the new infrastructure spending, but housing and other commercial projects should boost architectural segment demand as well.

    The paint market in Peru including all segments is estimated at around $375 million and is expected to be growing faster than GDP.

    While premium segment architectural paint has grown with higher per-capita income, new consumers also are coming into the market rapidly, driving greater demand for economy-segment products.

    “We saw a jump from medium and high categories towards the cheapest ones. Consumers are looking for price points,” said Diego Pacheco, the commercial manager of Chemifabrik, which produces Gamax brand paint, in an interview with El Comercio, in March.

    “That was precisely one of the reasons that motivated the Pacheco family to choose a new brand, ColorMax, aimed at this segment,” Pacheco said. The Gamax brand retains about 15 percent of the Peruvian paint market, he added. While the company primarily sells through hardware stores and home improvement chains, plans are to launch company-owned paint stores for retail sales later this year, he noted.

    About 70 percent of the sale of architectural paint in Peru is in hardware stores, which number about 4,500 in the country, Pacheco told El Comercio. Chemifabrik recently spent some $200,000 to expand its production facility in Santa Anita.

    Gamax competes with Qroma, the Peruvian paint market leader. Qroma now has 10 brands in Peru including American Colors, CPP, Tekno, Fast, Paracas, Jet, Uniquímica, Teknoquímica and Abralit. Another domestic producer, Ceresita announced plans in November to move some production to Quilicura, Chile.

    Among other competition in the Peruvian market are international brands like Sherwin-Williams, which has four paint stores in the country. 
    Related Searches
    • construction
    • coatings
    • sherwin-williams
    • industrial

    Related Content

      Trending
      • BEHR Launches COPPER FORCE Interior Paint
      • BASF Works with HS Students Aspiring for Careers in STEM
      • PPG Hosts The Future Of Coatings' Technology Innovation Day In Amsterdam | Coatings World
      • What are You Reading this Week?
      • PPG Hosts The Future of Coatings' Technology Innovation Day in Amsterdam
      Breaking News
      • What are You Reading this Week?
      • Nippon Paint Automotive Americas Appoints Robert Angart CEO and President
      • Sustainability, Economy are Focus of BCF’s Annual Conference
      • Demand for Rhino Shield Increases
      • ICP Receives ASC Innovation Award for Spray Foam That Meets Changing Environmental Regulations
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Biocides Market Outlook - 2027
      • Lab & Testing Equipment Directory
      • Aerospace Coatings Market

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      Thorne Relaunches Gut Health Test with Microbiome Wipe
      Alkemist Labs Announces Alkemist Assured Seal and Next Generation Transparency Reports
      GC Rieber Foundations Expand Philanthropic Efforts
      Coatings World

      Latest Breaking News From Coatings World

      What are You Reading this Week?
      Nippon Paint Automotive Americas Appoints Robert Angart CEO and President
      Sustainability, Economy are Focus of BCF’s Annual Conference
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      MPO's Most-Read Stories This Week—May 28
      New Breast Implant Surgery Guidelines to Enhance Patient Safety
      Rhythm Management Group Debuts RhythmSynergy Tech Platform
      Contract Pharma

      Latest Breaking News From Contract Pharma

      iECURE Enters Agreement with Center for Breakthrough Medicines
      CPDC Enters Clinical Manufacturing Deal with CellBion
      Olon to Build New R&D Center in Italy
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      K-Beauty Brand Siita Shares Plastic Decomposition Technology with the Beauty Industry
      Shellworks Raises $6.2 Million in Seed Funding
      Ulta Beauty Reports Record First Quarter 2022 Results
      Happi

      Latest Breaking News From Happi

      Global Skincare Treatment Devices Market Expected to Grow at Over 11.5% CAGR Rate Through 2028
      Technology Cuts Plastic Decomposition from 500 Years to Three Months
      Honeywell Addresses Critical Issues Such as Sustainability, Workforce Training and Digitalization
      Ink World

      Latest Breaking News From Ink World

      Weekly Recap: Flint Group, New Inks from Siegwerk and Zeller+Gmelin Lead This Week’s News
      Orion to Finish Gas Black Expansion in Germany by Early 2023
      Richard Childress Racing Shows Off New Wraps for 2022 NASCAR Season
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      UPM Raflatac accelerates label growth with acquisition
      Labelexpo Asia 2022 postponed
      Teklynx software helps Top Clean Injection validate labels
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Rael Raises $35M in Series B Funding
      Schobertechnologies Offers Rotary Web-fed Converting Solutions
      Thorne Relaunches Gut Health Test with Microbiome Wipe
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      ODT's Most-Read Stories This Week—May 28
      Toetal Solutions Raises $1.02 Million in New Financing
      ManaMed's ManaSport Wearable Ultrasound Earns FDA Nod
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Weekly Recap: OPV’s Future, Graphene Flagship and Japan Display Top This Week’s Stories
      SEMI Foundation Receives $1.5 Million Grant to Bolster Michigan’s Semiconductor Talent Pipeline
      onsemi Recognized by Fortune 500 for Its Transformation Journey

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login