Slow and steady expansion in Germany's construction industry
Germany’s construction industry is expected to post slow and steady growth, to reach a value of US$356.8 billion in 2020 in real terms, measured at constant 2010 US dollar exchange rates, according to a report by Timetric's Construction Intelligence Center (CIC).
According to the report, the country’s construction industry will expand in real terms over the forecast period (2016–2020) due to a gradual recovery in economic conditions and improvements in business confidence. Improving investor confidence is expected to increase public and private sector investments in residential, commercial and public infrastructure projects over the forecast period. The sustained pace of urbanization is expected to drive the need for new residential units and infrastructure development in the country.
Additionally, forecast-period growth is expected to be supported by the government’s efforts to develop the country’s transport infrastructure through its flagship program, Federal Transport Infrastructure Plan (BVWP) 2030. In addition, the government’s aim to phase out nuclear energy production by 2022, while focusing on the generation of renewable energy, is expected to drive funding towards renewable energy projects over the forecast period.
In real terms, the industry’s output value is expected to register a forecast-period compound annual growth rate CAGR of 2.8%, an improvement from the -0.6% CAGR witnessed during the review period (2011-2015).
Construction activity in Germany was weak during the review period due to the negative impact of the Eurozone crisis on the country’s economy. This resulted in poor investor confidence, which in turn reduced infrastructure construction activities in the country. Consequently, the industry’s output value, measured at constant 2010 US dollar exchange rates, declined from US$318.0 billion in 2011 to US$310.7 billion in 2015.
Germany, Construction Output
About this report
This information is taken from the Timetric report: ‘Construction in Germany: Key Trends and Opportunities to 2020'.
For more information visit: https://www.timetricreports.com/search/construction/“
CIC clients can access the report here: http://www.construction-ic.com/Reports/TableOfContents/construction-in-germany-key-trends-and-opportunities-to-2020
About the Construction Intelligence Center
The Construction Intelligence Center (CIC) is the most comprehensive source of data and analysis on the global construction industry. The Construction Intelligence Center is a product of Timetric, which provides information solutions and technologies that enable organizations to drive business value and manage business risk.
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Source: Company Press Release