The Bolivian Institute of Cement and Concrete (IBCH) expects cement consumption this year will grow at a rate of 10%, but it is cautious that such a level that level of expansion may be affected by the global economic crisis, according to local news reports.
Marcelo Alfaro, manager of IBCH, told FM Bolivia that the associaiton forecasts demand to rise due to the country’s favourable macroeconomic conditions where there is easier access to housing credit with low interest rates.
“All of that makes people excited to construct buildings, also the country has a certain amount of income from raw materials and gas, which creates investment in infrastructure projects by the central government, state governments and municipalities,” he said.
However, while conditions are ripe for increased demand, Bolivia may feel the knock-on effect of external economic factors, which could slow the forecasted rate of cement demand.
Consumption in 2011 rose 9.96 per cent over 2010. This level of expansion, according to Alfaro, has been maintained in recent years and therefore a 10 per cent advance is forecast this year.
In 2011, cement demand rose by 9.96% compared to 2010. This level of expansion, according to Alfaro, was held in recent years, so 10% is expected for this 2012.
"We believe that the private sector will continue the expansion and the state is also working at an important pace," said Alfaro, although the Chamber of Construction has cited financing problems for public works.