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REGIONALREPORT
Growth despite challenges
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modest increases, any growth is good in the region which has
been slowest to recover from the global economic crisis - last year
marked the first expansion in the Euroepan construcitonmarket
for seven years.
The positive findings were supported by figures from research
group Timetric, which showed the construction sector across
Europewas on course for anupturn of around+1.5% this year.
Ithadplaced2014’s results against globalGDPgrowth forecasts
of around+4%growth a year until 2020.This improvedposition
was also reported by EU statistics body, Eurostat, which said
constructionoutput in the28 countries of theEU increased+3%
overall last year.
Estimates fromEuroconstruct revealed the threemain industry
segments are set for further gains over the next two years.
The organisation said residential development was one of the
main sources of growth,whichwouldbe close to+4%on average
in the three year period covering 2015 to 2017. It also forecast
commercial construction to rise by an average of +2% over the
next two years across Europe.
Anupward trend is also expected for civil engineering projects,
which are predicted to grow at a rate of +2.5%per year to 2017.
Growth in the building renovation segment is another factor of
an improved outlook.
While there has been cause for optimism, market uncertainty
has been an issue due to factors such as the debt crisis affecting
Greece. But Athens’ agreement with the EU over terms for the
repayment of its € 240 billion (US$ 273 billion) borrowing
should stabilise confidence. Perhaps more destabilising are the
tensions between the EU andRussia over the latter’s annexation
ofUkraine’sCimmerianpeninsula.
But on the positive side, the EuropeanCentral Bank’s (ECB’s)
announcement of a € 1.1 trillion (US$ 1.4 trillion) quantitative
easing package should stimulate the Euro zone’s economy, as
will the sharp drop in oil prices seen at the end of last year.This
should in turn translate to strengthening constructionmarkets.
One of the key drivers of growth within Europe has been the
F
ollowing more than five years of economic downturn in
Europe, 2014was heralded as the year that saw a return to
growth in its construction sector.
According toEuroconstruct, the groupof European forecasting
bodies, therewas a+2.7%overall increase in constructionoutput
across a group of 19major EU countries last year.This took the
value of the region’s constructionmarket to € 1.3 trillion (US$
1.5 trillion) in2014.
This was up +1% against 2013 figures, with a forecast of
further improvement of around+2.1% for 2015.While these are
march 2015
international
construction
Growth despite
challenges
Europe’s construction sector has shown signs of
improvement through key infrastructure projects,
despite economic challenges.
Neill Barston
reports.
The Fehmarnbelt Fixed Linkwill connect
Rødbyhavn in Denmark to Puttgarden in Germany.
Crossrail in the
UK is one of
Europe’s largest
infrastructure
schemes
