ABSTRACT
The value of the output of the construction sector is estimated at 1R£5.7 billion in 1996. After a period of declining output (−7%) between 1991 and 1993, the industry experienced a period of rapid growth between 1994 and 1996, when output is estimated to have increased by a cumulative 40%. The Central Bank forecasts a growth of 8% in 1997. The main positive factors affecting the performance of the industry have been the continuing rapid growth of the economy (average 4.5% per annum since 1991); the large volume of inward industrial investment; an increase in household formation; a significant growth in finance at relatively low interest rates (currently around 7% APR); and the success of the Urban Renewal Scheme underpinned by tax incentives. An all time record of 33,700 houses were built in 1996.
