MOF-BUDGET Jun. 2016 | Page 369

The Central Bank Of The Bahamas’ Contribution To The 2016-2017 Budget Communication 21.8% to 340 new projects, resulting in an 8.9% falloff in the value of the portfolio to $94.0 $0.2 million to $1.3 million. The number of construction completions in New Providence and Grand Bahama fell by 8.9% to 594, but the aggregate value advanced by 71.6% to $301.4 million, due to the inclusion of several high end properties. Residential completions lessened by 11.1% to 439, but the total Annex A million. Similarly, commercial projects contracted by 48.9% to 48 and the corresponding value by 41.0% to $18.7 million. Meanwhile, public sector starts ros e by 2 to 6 and the value firmed by value grew by 42.1% to $175.1 million. Further, the number of concluded commercial projects declined by 3.2% to 149, although the associated value increased by 45.8% to $72.7 million, owing primarily to the completion of two boutique resorts in the capital. In addition, the public sector recorded 6 completions, valued at a higher $53.7 million. The forward looking indicator building permits, grew by 7.2% to 1,327 units, while valuations were only incrementally higher by 1.0% at $541.7 million, vis-à-vis the comparative 2014 period. Approvals for commercial and public projects increased by 5.1% and 0.1%, to 356 and 24 units; however, the associated value fell by 4.8% and 7.2%, to $197.4 million and $25.8 million, respectively. In contrast, residential permits were reduced by 10.0% to 947 units, but the corresponding value rose by 5.3% to $318.5 million. [369] In terms of lending conditions, the average interest rates for commercial and residential mortgages stabilized at 8.6% and 8.0%, respectively, vis-à-vis the averages recorded in 2014. EMPLOYMENT Given the weakness in economic activity, the unemployment rate increased over the six months to November 2015, although the rate declined in comparison to the previous year. According to data released from the Department of Statistics’ Labor Force Survey, the jobless rate declined initially by 3.7 percentage points to 12.0% at end-May in comparison to November 2014, reflecting the on-boarding of staff for the Baha Mar project and the hiring of temporary workers for a number of events. In contrast, the unemployment rate rose by 2.8 percentage points over the following six-month period to 14.8% at end-November, 2015, as the number of unemployed persons grew by 25.6% to 31,375, attributed to a combination of seasonal factors, a reduction in the number of discouraged workers by 30.4% to 2,750 and the layoff of over 2,000 previously on-boarded staff from the Baha Mar properties. At end-November, the total labour force stood at 212,195, a gain of 3,300 persons (1.6%) over the prior six-month period. 6 2016/2017 DRAFT ESTIMATES OF REVENUE & EXPENDITURE