Role of Construction and Mining Sector in Economy for the year 2013
Published On: 2014-03-31 06:28:50
The global recession had caused the economy to collapse and it had stopped many economic activities across the globe but recently there’s some change that has taken place as the economies are starting to recover from this prolonged recession. This recovery of recession has opened doors for new construction projects since more funding is available which suffice the maintenance of build infrastructure as well as to develop power and mining capabilities.
The year 2013 has been quite a good year for the economy as the global construction industry seems to be heading to a brighter side, although the global exploration budget went down by 29% but it seemed quite prosperous economic growth wise. Countries like Middle East, South Africa and Australia since these countries are full mining resources have been very lucky in a better economic growth which has been as a result of an increase in the construction projects worth billions of dollars. This short report is going to briefly explain the role of construction and mining sector in the global economy in the year 2013, mainly focusing on countries, like Australia, South Africa and Middle East. Below is a graph depicting the production of different mineral resources yearly by different countries.
China is leading the chart with a bolstering production of mineral resources yearly with United States being at the second spot.
Many projects have got cancelled and many have been launched in Middle East. A project tracking service of the region has estimated the value of ongoing projects in the GCC that are valued at a huge amount of money that is 1.5trn US Dollars. One of the companies of Middle East that is based in Dubai has forecasted that around 900bn US Dollars have been decided to be spent on the construction in the GCC up to 2020. As for Saudi Arabia and Qatar, these countries have headed towards a better economy with an increase at a rate of 10% in 2010-2012 and have also accelerated in 2013.
Public Sector has played a vital role in the growth of the economy as they have plans to build a better infrastructure which will help them to expand their business ever more. According to MEED Projects, they estimate that approximately $200bn to be spent on megaprojects of Qatar especially because of the football world cup of 2022 that has been set up to take place in the country. Moreover, The Doha Metro is another a billion dollar project is finally moving ahead with an estimated investment of $8bn these contracts were awarded last year in June 2013 and has been scheduled to be completed by the year 2019. One of the largest projects of Qatar, Lusail City, which is worth $45bn, is being worked on by Qatari Diari, This project is being designed to accommodate over 200,000 people at a time.
The increasing growth of Africa’s economy can be a chance that could create hundreds of jobs and can help millions of people to get rid of poverty. As the region’s economy is expected to grow by 6.1% in 2014. This economy growth is as a result of increasing construction work in South Africa and the rapid infrastructure development has played a vital in this boom of the economy.
According to some reports it is has been suggest that for these prediction to be true a rapid infrastructure development is required. This need of a better infrastructure is needed now more than ever. Along with that in Tanzania the demand for cement had increased by 10% as much as 2.7 million tons, furthermore, building industries had also accelerated in the year 2012.
Economic Growth Rate in Construction & Mining Sector:
The economic growth statistics for the year 2013 for China seemed quite stable starting from 9.9% of growth in January, 2013 and ending up at 9.7% in December, 2013. The industrial production grew steadily. In 2013, the total value added of the industrial sector was 21,068.9 billion Yuan, up by 7.6 percent over the previous year.
United States economy expanded by 3.2% in 4th quarter of 2013 with a bulging 17% of its counterparts from Construction and Mining sector. Though the economy showed signs of instability due to the other factors the country is facing.
The Australian economy derived more than 5% of its GDP growth from Mining sector in the year 2013. Mining sector shared about 8% of the industry output during the year with 10% employment growth in the mining sector.
List of References
- THE ECONOMIST. (2013, October 8). Construction In The Middle East Is Booming Again. Retrieved March 3, 2014, from http://www.businessinsider.com: http://www.businessinsider.com/construction-in-the-middle-east-is-booming-again-2013-10
- byAcha Leke, S. L. (2010, June 31). What’s driving Africa’s growth. Retrieved March 28, 2014, from http://www.mckinsey.com: http://www.mckinsey.com/insights/economic_studies/whats_driving_africas_growth
- INTERNATIONAL MONETARY FUND. (2013, November 31). World Economic and Financial Surveys. Retrieved March 28, 2014, from http://www.imf.org: http://www.imf.org/external/pubs/ft/reo/2013/mcd/eng/pdf/mreo1113.pdf
These analysis are brought to you with a great support from Shibang Machines, we are striving harder to promote the economic activity and mining resources relationship with our mere research capabilities. Any suggestions regarding this post can be sent through the contact page.
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