CBIC Forecasts 2% Growth for Brazil’s Construction Sector in 2026

Overview

• CBIC projects the sector’s GDP to expand 2% in 2026, a forecast issued despite an atypical calendar that includes elections, a World Cup and many holidays.
• Anticipated interest-rate cuts and broader mortgage availability, including a new savings-funded model and higher SFH limits, together with stronger infrastructure works, are cited as key drivers.
• Public housing finance is expected to bolster activity with a record FGTS allocation of R$144.5 billion for 2026.
• The Cities Ministry signaled that Minha Casa, Minha Vida could contract 1 million homes in 2026 and another 1 million in 2027.
• After slower growth in 2025—about 1.7% through November versus 4.2% in 2024—official IBGE data arrive in March, and high taxes, financing costs and labor expenses remain major constraints.