The construction industry expanded six percent in 2007, its slowest annual growth rate for five years, the government said yesterday. In December, the industry grew 11 percent from the same month a year earlier, but retreated 0.3 percent from November, the Economy Ministry said in a statement.
Analysts expect a continued slowdown in the building industry, which has recovered rapidly from a financial crisis that peaked in 2002, when construction activity declined 28 percent.
A year later, it jumped 38 percent and growth had remained in double-digits through 2006.
"From now on, we expect it to slow but slightly," said Fausto Spotorno, an economist at consulting firm Orlando Ferreres and Associates.
Construction has been an important source of jobs in Argentina, where strong consumer spending has driven five straight years of economic growth at a rate of more than eight percent.
The recovery has fueled demand for new homes and state-
funded construction projects have also boosted the industry.
However, analysts expect fewer public works in 2008 following the bigger spend ahead of last year's presidential election.
"The main factor in 2008's slowdown will be public works. Last year was a year with a lot of public works and I don't think we'll see that again this year," Spotorno said.
"If you look at recent months, public spending has slowed down and I think the government's going to try to tighten its belt," he added.
