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Strong Construction Activity Noted In H1

Partial indicators of construction activity noted strong outcomes in the first half of this year, the Reserve Bank of Fiji June Quarterly Review has highlighted. The report said domestic cement
22 Sep 2015 10:55
Strong Construction Activity Noted In H1

Partial indicators of construction activity noted strong outcomes in the first half of this year, the Reserve Bank of Fiji June Quarterly Review has highlighted.

The report said domestic cement sales, a direct input for construction work, rose by an annual 42.1 per cent (to 79,376 tonnes) in the year to June.

The total value of work put in place by the construction sector increased by an annual 8.4 per cent to $110.5 million in the first quarter of this year.

The Reserve Bank said this was mainly underpinned by higher private sector (7.1 per cent) and public sector (10.2 per cent) activities.

The Reserve Bank said similarly, a total of 119 completion certificates with a value of $21.1 million were issued in the same period.

“While the number of completion certificates issued declined annually by 20.7 per cent, the value of projects completed increased by 39.0 per cent, reflecting the completion of higher valued projects,” it noted.

“The number and value of building permits issued, an indicator that gauges the future supply of buildings, rose by an annual 0.6 per cent and three per cent, respectively in the first quarter.”

The central bank stated construction activity is projected to accelerate in the second half of the year as Government’s planned capital projects gain momentum.

This year, the construction sector is projected to expand by 20.8 per cent, following an estimated growth of 16.2 per cent the past year.

 

Investment

The Reserve Bank said investment spending remained robust in the review period, as reflected by increased lending for investment purposes.

Cumulative to June, new lending for investment purposes rose annually by 82.1 per cent to $242.8 million.

This was on account of the significant growth in new loans to the building & construction (by $61.1 million to $112.1 million) and the real estate (by $48.3 million to $130.7 million) sectors.

In 2015, investment activity is expected to be around 26 per cent of GDP, a third consecutive year of investment level above 25 per cent of GDP.

 

Labour market

The report said conditions in the labour market remained favourable until the second quarter, reflected by the RBF’s Job Advertisement Survey results.

The number of vacant positions advertised rose by an annual 16.1 per cent cumulative to June.

The outlook for Fiji’s labour market is largely positive and on par with the economy’s current expansion path.

Feedback:  rachnal@fijisun.com.fj

 

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