Construction activity, reflected by the value of work completed for infrastructure projects, has experienced a slowdown during the first half of this year. According to the recent quarterly economic update from Westpac Fiji, the year-to-date value of construction work has reached $244.51 million, which is an 8.9 percent decrease compared to the same timeframe last year.
Senior economist Shamal Chand attributed this decline to a lack of activity in both private and government building projects. Additionally, the number of new building permits issued in the first six months totaled 466, representing a 27.4 percent drop from the previous year.
Despite the current challenges, Mr. Chand noted potential growth on the horizon. He pointed out that the Reserve Bank of Fiji (RBF) reported increases in cement production and domestic cement sales of 6.6 percent and 7.6 percent, respectively, for the year to date. This increase indicates strong demand for construction materials, which could lead to a rise in the real value of construction activity in the near future.