KINGSTON, Jamaica (Friday, November 26, 2021) — The Construction industry continues to figure in Jamaica’s gradual recovery from the economic fallout, precipitated by the coronavirus (COVID-19) pandemic.
The sector is estimated to have grown by 1.7 percent during the July to September 2021 quarter, relative to the corresponding period last year, and contributed to the Goods Producing Industry’s 2.8 percent expansion, over the three months.
Director General of the Planning Institute of Jamaica (PIOJ), Dr. Wayne Henry, said the out-turn for construction was spurred by growth in the ‘Other Construction’ and ‘Building Construction’ components.
This, he added, reflected a 5.6 percent increase in sales of construction and related inputs.
The Director General was speaking during the PIOJ’s digital quarterly media briefing, on Wednesday.
Dr. Henry said growth in the ‘Other Construction’ component resulted from increased capital expenditure on civil engineering activities, during the review period
This was mainly reflected in the National Works Agency’s (NWA) disbursement of $9.1 billion, up from $5.1 billion in the corresponding quarter of 2020.
The Director General explained that the provision largely covered work on the Yallahs to Harbour View leg of the Southern Coastal Highway Improvement Project (SCHIP).
Additionally, Dr. Henry noted that the National Road Operating and Constructing Company Limited (NROCC) disbursed $2.2 billion, as against $1.3 billion in 2020.
“Expenditure facilitated works on the SCHIP Part ‘A’; that is, the May Pen in Clarendon to Williamsfield in Manchester component,” he told journalists.
Dr. Henry indicated that growth in the ‘Building Construction’ component was driven, mainly by the performance of the non-residential category.
This, he said, reflected hotel construction and renovation activities, as well as the build-out of commercial office space.
The economy is estimated to have grown by an overall 6.3 percent during the July to September 2021 quarter, with the Service Industry recording 7.3 percent and the Goods Producing Industry 2.8 percent.