Slow start to building
A total of 57 building plans were approved in February with a value of N$30.2 million, while seven buildings with a value of N$27.4 million were completed.
Thus far, 2017 is off to a slow start with 231 plans approved in the first two months while 48 were completed. These are the lowest numbers in the last seven years, according to IJG who released their recent building plans report.
The year to date value of approved building plans currently stands at N$289.7 million, 15% lower than the corresponding period in 2015. On a 12-month cumulative basis, 1 694 building plans were approved worth approximately N$1.92 billion, 15.4% less than the preceding 12-month period, according to IJG.
“This decline is worrying as construction has been a major driver of growth in the last couple of years, and our overall gross domestic product growth figures are likely to slow. Between 2010 and 2015 construction took centre stage in the Namibian economy and created a substantial base, of which continued growth was always going to be a challenge, but the abrupt slowdown is likely to cause ripple effects in the economy,” said IJG.
“As a leading indicator for economic activity in the country this implies that the whole economy could remain under pressure for the foreseeable future. With government spending on infrastructure slowing and the current economic environment making it increasingly difficult for banks to extend credit, we expect further contractions in the construction sector in 2017 and possibly beyond. This is cause for concern as the sector provides a substantial amount of jobs on which many households depend,” IJG concluded.
STAFF REPORTER
Thus far, 2017 is off to a slow start with 231 plans approved in the first two months while 48 were completed. These are the lowest numbers in the last seven years, according to IJG who released their recent building plans report.
The year to date value of approved building plans currently stands at N$289.7 million, 15% lower than the corresponding period in 2015. On a 12-month cumulative basis, 1 694 building plans were approved worth approximately N$1.92 billion, 15.4% less than the preceding 12-month period, according to IJG.
“This decline is worrying as construction has been a major driver of growth in the last couple of years, and our overall gross domestic product growth figures are likely to slow. Between 2010 and 2015 construction took centre stage in the Namibian economy and created a substantial base, of which continued growth was always going to be a challenge, but the abrupt slowdown is likely to cause ripple effects in the economy,” said IJG.
“As a leading indicator for economic activity in the country this implies that the whole economy could remain under pressure for the foreseeable future. With government spending on infrastructure slowing and the current economic environment making it increasingly difficult for banks to extend credit, we expect further contractions in the construction sector in 2017 and possibly beyond. This is cause for concern as the sector provides a substantial amount of jobs on which many households depend,” IJG concluded.
STAFF REPORTER
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