The construction industry in Uruguay is forecasted to experience growth in 2025 after a slight decline in the previous year. This growth is attributed to robust institutions, developed regulatory frameworks, and labor-intensive construction practices in the country. Investments in water and transportation infrastructure projects, along with a boost in tourism activity, are key drivers for the industry's expansion. Additionally, the government's plan to increase solar energy production and achieve specific electricity production targets by 2025 will contribute to this growth. Over the period from 2026 to 2029, Uruguay's construction industry is expected to grow annually by an average of 3.6% in real terms. This growth will be supported by investments in hydrogen industries, transport infrastructure projects, and water infrastructure projects. The country's green hydrogen and derivatives roadmap aims to attract substantial investment by 2040, further fueling growth in the construction sector. Some major projects that are set to boost economic development include the Green Hydrogen and Power Plant Development, Modern City Development in Colonia, and Canelones Data Center Development. The government has also allocated funds for sanitation projects nationwide, indicating a comprehensive approach to infrastructure development. With a pipeline value of UYU369.1 billion ($8.9 billion) in construction projects as of May 2025, Uruguay is poised for significant growth in the sector. The country's focus on sustainable energy and infrastructure development positions it for a positive trajectory in the coming years.