The construction industry is expected to keep on booming through to the end of 2002 and the financial services sector would remain strong in the coming year, according to Dr. Andrew Brimmer.

The economic advisor said that a large number of construction jobs were still scheduled to be in progress and were of vital importance to the economy.

"For the traditional other sectors of Bermuda's economy (excluding tourism), low to moderate growth is expected for 2002," he said, adding that the principal areas were construction, utilities and local manufacturing.

"The construction industry will be of particular importance. This sector has been operating at full capacity for the last several years and a sustained high level of activity is expected in 2002."

He said that despite major projects like the ACE and XL Capital buildings having being finished earlier this year, there were many other projects in the pipe-line.

"There are a number of other large projects that are in progress. Also there are indications that smaller construction jobs that were previously on hold due to capacity constraints are now coming on line, so the activity in construction will help to bolster domestic demand in the economy," said Dr Brimmer

He added that the fastest growing sector in the Bermuda economy was the financial services sector.

Dr. Brimmer said: "The field has been buoyant in 2001 and the pace is not only expected to continue in 2002 but may even be accelerated."

He pointed to the rush of reinsurance companies to the Island and said that the banking sector remained strong with employment levels in this sector expected to remain stable.

He added: "The upshot is that new jobs will be created in the financial services sector in 2002 with positive contributions toward domestic demand."