Contribution of infrastructure sector to GDP trend
Infrastructure serves as the foundation of a nation’s economic growth and development. It encompasses a wide range of physical structures, facilities, and systems that support and enable economic activities. Infrastructure refers to the physical assets, systems, and facilities that enable economic activity, such as roads, bridges, airports, ports, and utilities.
A presentation was made this week of how the infrastructure industry contributes to the GDP. This was held at Hilton Inn Garden during the Construction Industry Council (CIC) Stakeholder’s Forum.
An observation was made that infrastructure forms the backbone of economic development, providing the necessary physical and social growth.
Through transportation networks, energy grids, communication systems, water and sanitation facilities, and social infrastructure, nations can improve productivity, attract investments, and enhance the overall well-being of their citizens. systems for sustained
The Government and policymakers have in this case prioritized infrastructure development, ensuring adequate investments, effective planning, and efficient management. By doing so, they unlocked the transformative power of infrastructure and laid the groundwork for a prosperous and resilient economy.
The GDP at market price of which is construction was E58 689 938 in the year 2017, in 2018 it was E61 771 223 while in the year 2019 it was E65 588 457 and 2020 it was E71 712 115 and finally in the year 2022 it was E78 390 423.
The trend here is up and down but mostly up throughout the years, which is impressive by financial standards.
Infrastructure cannot exist without vital skilled laborers to build, repair, and maintain all forms of our bridges, roads, airports, schools, and the like.
When presenting for example the presenter said with the skilled labor gap widening due to a lack of a younger and qualified workforce to take the place of the current workforce that is readying to retire (and other reasons), lags in key areas of the infrastructure in Eswatini can cost communities time, money, and expansion opportunities. To support their infrastructure the presenter said they need to support the men and women that bring the infrastructure to life. Take for instance the transportation infrastructure, including roads, railways, and airports, plays a fundamental role in facilitating the movement of goods, services, and people.
In the year 2018 they contributed a staggering E 1 559 085 which way less than what they contributed to the year 2022 where E2 111 732.
Efficient transportation networks reduce transportation costs, enhance connectivity, and stimulate trade and commerce.
Improved accessibility and connectivity lead to expanded markets, increased investment opportunities, and the integration of regions and economies.
For instance, well-developed transportation infrastructure enables businesses to access raw materials, deliver products to markets, and attract investments, thereby bolstering economic growth.