Construction Sector continues to lead economy
By Melissa Bryant
Reporter-SKNVibes.com
~~Adz:Right~~ BASSETERRE, St. Kitts - THE construction sector accounted for 15.5 percent of Gross Domestic Product in 2007, which represents an increase in activity of 4.4 percent compared to 2006.
This figure was indicated by the Minister of Finance, Dr. the Hon. Timothy Harris, in his 2009 Budget Address yesterday (Dec. 16).
Harris stated that a significant proportion of this expansion was due to ongoing work on several large and medium-scale projects such as Ocean’s Edge Resort, Sunrise Villas at Half Moon Bay and the Silver Jubilee Athletic Stadium.
He noted, however, that the robust performance of this sector was not only as a result of large-scale development, but it also extends to other areas in the sector.
“Home construction continues to make a vital contribution which can be linked to the overwhelming response of citizens to Government’s vision of wealth creation through land and home ownership.
“The government will aggressively continue the construction of affordable housing to satisfy the ever-increasing demand for homes in fulfilment of our policy to empower people to reap the financial and economic benefits of home ownership. The National Housing Corporation (NHC) has commenced a new housing project that will cost some EC$50M and will provide 500 houses to the people of this Federation, including our young people and other persons who do not yet own a house,” revealed Harris.
He further stated that one of the Ministry’s top priorities is to continue with the construction of houses to relocate families in the coastal areas whose houses were damaged by Hurricane Omar, and that the NHC is making good progress with the Venezuelan-funded project to upgrade 200 starter homes and to provide 300 homes for former sugar workers.
Additionally, Harris reported that the figure for new residential “housing starts” increased by some 30.6 percent from 98 in 2006 to 128 in 2007 while completions increased by 182.1 percent from 28 in 2006 to 79 in 2007.
Moreover, he disclosed that loans and advances for construction activity increased by 38.8 percent to $427.9M in 2007, of which financing for home construction and renovations accounted for 56.8 percent.
