PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

ethanol and paint, whereas lower demand for construction materials such as cement,
blocks and tiles accounted for the down-turn in the Non-Metallic Products sub-industry.
Construction
During January – September 2010 20 , real value added for the Construction industry 21 fell
by an estimated 2.7 per cent.
This performance occurred against the background of the lingering effects of the negative
impact of the global economic crisis on the domestic economy. The downturn recorded
for the industry was attributed mainly to:
decline in activities in Building Construction due to a reduction in the number of
projects
reduced activities associated with the completion of major construction work on
the North Coast Highway Project at the end of 2009 and work stoppage on
Highway 2000 due to geological issues.
Cement production for the nine-month period amounted to 526,090 tonnes, a 4.1 per cent
decline when compared with the amount produced in the corresponding period of 2009.
Approximately 141,573 tonnes of cement was imported during the first nine months of
2010 compared with 129,743 tonnes of cement during the corresponding period of 2009.
The export of cement increased to 132,804 tonnes during the period relative to 59,009
tonnes during January to September of 2009. Cement supply fell by 13.7 per cent to
534,859 tonnes.
Table 5.9. Selected Construction Industry Indicators,
January – September 2008-2010
Indicator 2008 2009 2010
2010/2009
% change
Housing Starts 2,616 1,607 2,262 40.8
Completions 2,739 2,092 1,961 -6.3
Total Value of Mortgages ($ million) 2,672 17,987 17,076 -5.1
Comm. Bank Loans & Advances ($ million) 12,086 49,825 56,646 13.7
Cement Production (tonnes) 537,468 549,155 526,090 -4.2
Cement Supply (tonnes) 708,502 619,529 534,859 -13.7
GDP Growth Rates (per cent) -3.7 -4.9 -2.7
Source: Compiled by the PIOJ
Non-residential construction expenditures by selected entities during January - September
2009 were as follows:
1. The Port Authority of Jamaica disbursed a total of $5 694.9 million relative to $2
450.5 million disbursed in the comparable period of 2009.
20 Latest actual data available at the time of writing.
21 Building Construction (82.0 per cent) and Other Construction, mainly Civil Engineering (13.0 per cent),
together account for 95.0 per cent of Total Construction. Building Installation (inclusive of repairs)
accounted for the remaining 5.0 per cent.
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