REAL GROSS Domestic Product (GDP) for the construction and installation sectors grew by 2.2 per cent last year when compared to 2001.
The information is contained in the 2002 edition of the Economic and Social Survey, a publication of the Planning Institute of Jamaica (PIOJ), which was recently tabled in Parliament..
"This was the third successive year of growth in the sector," the document said.
The improved performance for 2002 resulted from increases in both residential and non-residential construction activities. The higher level of activity was evident in housing completions, which accounted in part, for increases in installation activities.
Additionally, there were more housing starts during the year. "Resumption of work on the Northern Coastal Highway as well as the continuation of work on the Highway 2000 project were major contributors to the improved activities in non-residential construction," the PIOJ said.
It noted that the improvement in economic performance for the sector was further reflected in:
Cement Production and Sales which increased by 3.2 per cent and 4.2 per cent respectively;
- the value of mortgages (up 3.2 per cent);
- net credit to the sector by commercial banks (up 42.2 per cent);
- an increase in the production of selected aggregates used in the building
construction sub-category of the Construction sector; and
- an increase in the number of electrical inspections to 24,630 units from
23,497 units.
During 2002, the estimated cost for construction related damage cause by the May/June flood rains and the effects of tropical storms was $4.247 million. Of this amount $4.129 million was for roads. The remainder was for housing.
POLICY FRAMEWORK
The Ministry of Water and Housing has, in the meantime, revealed its long-term vision for the development and construction of affordable, safe and legal housing solutions for all Jamaicans by the year 2005.
In 2002, the Ministry completed a draft joint venture policy under which it would now act as a facilitator of housing development.
"In this role the Ministry will no longer participate in the physical construction of housing units, but will instead be involved throughout the life of the various projects, ensuring that the development satisfy all the requirement of the Real Estate Act," the PIOJ said.
Construction and installation activities were influenced by policy in other sectors including, energy, electricity and water and telecommunication and transportation. Infrastructure projects relating to roads and bridges were designed to improve the linkages between the urban and rural areas and to facilitate the expansion of commercial activities within specific regions of the country.
The increased activity in the construction sector was reflected in elevated levels in the overall production of inputs. These include silica and sand (up 14.6 per cent); limestone (up 1.0 per cent); sand and gravel (up 2.0 per cent); and marl and fill production (up 5 per cent). Paint production increased by 10.4 percent, cement sales were up by 3.2 per cent and production up by 4.3 per cent.
EMPLOYMENT
Total employment within the construction and installation sectors grew by 9.2 per cent to 87,550 persons, in 2002. Employment figures for males stood at 83,250 and for females at 4,300 up by 7.8 per cent and 48.3 per cent respectively when compared with 2001.
During 2002, the residential construction sub-category recorded an increase in both housing starts and completions when compared to the previous year.
Total starts increased to 9,729 units, an increase of 88.1 per cent, and completions increased by 58.8 per cent to 5,073 units. The improvement in housing starts represented units built mainly by the major public sector agencies, the National Housing Trust (NHT) and the National Housing Development Corporation (NHDC.)
HOUSING SOLUTIONS
Housing solutions started by the NHDC amounted to 4,570 units. This represented a five-fold increase over 2001. Of the total housing starts by the NHDC, 66.3 per cent were units being built for settlement and upgrading. Housing completions by NHDC for 2002, totalled 719 units compared with 332 units in 2001. One hundred and eighteen of the units completed were done under the Operation PRIDE programme.
Housing starts by the NHT went up to 3,671 units, an increase of 148.5 per cent compared with 2001. The increase was due primarily to the preparation for construction of housing schemes in Green Pond Phase 1, in St. James and Monymusk Housing in Clarendon.
Total starts for home improvement financed by the NHT increased to 174 units (up 72.3 per cent) compared with 2001. However, housing completions by the NHT declined to 2,130 units, down by 14.3 per cent. Home improvement completions declined to 172 units (down 24.2 per cent) compared with 2001. Consistent with the increase in total housing completions, the number of electrical inspections for residential housing increased to 21,047 compared with 17,198 in 2001.
