CIC - Construction Intelligence Center

Slow and steady expansion in Germany's construction industry

12 Jan 2017

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.

 

For more information and updates, please visit www.construction-ic.com.

 

About Timetric

 

Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary.

 

For more information and updates, please visit www.timetric.com.

 

For media enquiries, please contact Frixos Melas at the Timetric press office at press@timetric.com or call +44 (0)20 3096 5769.

 

 

 

 

 

 

 

 

Enquiries relating to obtaining this report should be directed to sales@construction-ic.com or call +44 (0) 203 096 2615.



Source: Company Press Release