Diminished credit access is hindering growth in Brazil's metallic construction sector, Carlos Gaspar, VP of market development for national metallic construction association Abcem, told BNamericas.
"The amounts heading to the building sector have been insignificant," said Gaspar.
Gaspar, who also works for Gerdau (NYSE:GGB), expects the credit situation to be reverted soon. In recent weeks, the Brazilian government has shown signs it wants to ease up on credit restrictions by announcing measures to stimulate different sectors of the economy.
"Credit expansion is one of the most important decisions the government could make to help recover Brazil's industrial activity," he said.
Gaspar also urged the government to reduce the tax burden in order to stimulate construction.
The Gerdau executive said metallic construction will likely continue to dominate the industrial sector and there is also a growing interest in using metallic construction in shopping centers, hospitals and hotels.
"Some recent metallic construction projects have caught the attention of investors and builders due to its quickness and efficiency," said Gaspar.
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