Jamaica
News - Real Estate - Projects
Source: Jamaica Gleaner, Camilo Thame, February 23, 2007
Cement
sales, projects fail to rescue construction
The building sector regained some
of its vibrancy as new projects and public spending on infrastructure programmes
kicked in, but the accompanying 22 per cent increase in cement supplies to the
market were not enough to eke out growth for consruction GDP.
The sector, which in calendar 2005 contributed
10 per cent of GDP or $720 billion of national earnings, declined by 2.8 per
cent in real terms, based on Planning Institute of Jamaica figures reported last
week.
After four consecutive quarters of declines, the
three months to December 31 saw the first uptick - one per cent - for the sector
on last minute efforts to complete preparations for Cricket World Cup scheduled
for this March and of port expansion activities during the quarter.
In the last three months of 2006, the Port
Authority of Jamaica (PAJ) spent close to $1.5 billion upgrading its cargo
handling facilities, up from $67 million in the comparative quarter.
Overall, government spent $8.9 billion on capital
projects during the December quarter compared to $3.6 billion in the comparative
2005 period.
The state's capital spending at $21.6 billion
for 2006 was 31 per cent higher than the year prior.
The start of the 600-room hotel in Hanover,
Fiesta, back in October along with continued works on other Spanish hotels
helped keep spending in construction above 2005 levels.
A significant chunk of the 143,000 tonnes of
cement brought in by two major importers, Mainland International and Arc
Systems, sat down in warehouses, reliable sources say, despite the voracious
demand for the product at the beginning of the year, explaining in part why
increased construction activities during the latter part of the year did not
translate into growth for the sector.
Manufacturing, which contributes 13 per cent of
GDP, continued its declined during the last quarter as a result of Cigarette
Company of Jamaica moving its factory operations to Trinidad during the last
quarter of 2005, ending the year down 2.2 per cent on 2005.
All other goods producing sectors saw an
increase in output.
The agriculture sector grew by 15 per cent due
largely to favourable weather conditions and initiatives geared at improving
productivity, while mining and quarrying, according to the government planning
agency, saw real increase in output of 1.8 per cent.
Crude Bauxite production for the purpose of
export increased by 6.2 per cent during the December quarter to push production
for 2006 to 4.5 million tonnes, 12 per cent above 2005 levels, while alumina
production rose by 7.2 per cent in the final quarter to bring up production for
the year to 4.1 million tonnes, the same as last year.
Alumina production declined on the year before
for seven of the first nine months of 2006.
According to the PIOJ all areas of the
services sector saw a real increase in output during 2006.
Transport, storage and communication, up 4.6 per
cent, as air and maritime cargo volume increased significantly over the year,
coupled with the increased passenger movements during the year as total tourist
visiting the island increased to 3 million people;
Distribution increased by 1.2 per cent
benefitting from higher consumption linked to increased loans and remittances,
which were 9-10 per cent higher than last year's US$1.62 billion.
Other growth sectors were, Electricity and water,
growing at 3.5 per cent, finance and insurance services at 2.5 percent and
hotels restaurant and clubs, which ended the year 12.4 per cent higher than in
2005, according to PIOJ estimates.
Overall, the economy recorded GDP growth of
2.7 per cent, PIOJ reported.
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