Construction sector upbeat.

CONSTRUCTION SECTOR UPBEAT. Construction in Costa Rica grew 41% in 2003 Vs. the year before, according to the Costa Rican Construction Chamber, reports The Tico Times (Feb. 12, 2004):

"Last year was an above-average year," chamber president said Jaime Molina. "In 2003, an additional 2,749,462 square meters were constructed, vs. the average of 1,800,000 square meters reported in recent years. We believe this will also be a good year, possibly better than the last";

However, some leading construction companies claimed they had not felt the effects of the recent construction boom described by the chamber. "If the chamber's numbers reflect an increase in construction, it was the result of a few very large projects such as the Four Seasons Resort (in the northwest province of Guanacaste) and new condominium projects west of San Jose," said Javier Leiton, of construction firm Bases Solidas;

Most new investments in construction last year (58%) were in housing, which grew 25% and totaled 1,595,487 square meters. Four in five new residential projects were built in the Central Valley. About 42% of new housing projects were developed in the San Jose province. Fueled by two new shopping malls in east San Jose - Multiplaza del Este in the southeastern suburb of Zapote and Terra Mall in the eastern suburb of Tres Rios - and new tourism projects including the Four Seasons, commercial construction grew 74% last year, totaling 628,991 square meters. Overall, commercial developments represented 23% of all construction projects built last year. Industrial construction also boomed last year, growing nearly 83% overall and totaling 374,668 square meters.

The construction industry directly provided jobs for 110,000 people - 3,000 more than the year before. Construction made up 6.7% of the country's total workforce, including Nicaraguan immigrants, who make up 60% of the sector's workforce, according to the chamber. The construction sector also indirectly employs a large number of material producers, importers, lawyers, and others, said Molina, who estimated the sector probably employs as many as 300,000 people.

A series of new projects by the Costa Rican Electricity Institute (ICE) and the long-awaited highway connecting San Jose to the Pacific shipping port of Caldera are expected to increase construction in 2004. One executive also predicted increased government construction spending. "The government has plans to submit several projects to public bidding," he said. "There's also an important road maintenance project on the way."